Bridging Traditional Finance and Crypto: Inside the Digital Assets Association

The Digital Assets Association (DAA), a non-profit focused on advancing institutional adoption of tokenized assets, announced its official launch this week.

Headquartered in Singapore but with a global outlook, the DAA brings together stakeholders from across financial services, fintech, law and technology.

TLDR

• Digital Assets Association (DAA) launches to bridge traditional finance and RWA tokenization
• Founding committee has senior leaders from DigiFT, Onfet, Tranchess, Banking Circle, Standard Chartered, Bright Point
• Aims to facilitate collaboration, develop standards, advocate responsible adoption, empower workforce
• Citi report predicts tokenization of assets could reach $4 trillion by 2030
• DAA will host events, engage policymakers, offer training to progress the ecosystem

With founding committee members from innovative startups to banking giants, the DAA reflects the widespread belief that asset tokenization and decentralized finance will transform traditional finance. It provides a platform to collaborate on critical issues like regulations, standards, and workforce development to responsibly unlock this potential.

The DAA germinated from several like-minded organizations already active in the ecosystem. DigiFT, a regulated on-chain exchange for real-world assets (RWA), is pioneering new tokenized markets with approval from Singapore’s central bank. Blockchain platform Onfet enhances operational efficiency through tokenization. And Tranchess develops tokenized funds tracking everything from crypto to real estate.

These founders recognize tokenization could be the ‘killer app’ for blockchain in finance. One often-cited Citi forecast predicts over $3.8 trillion of assets tokenized by 2030. While adoption is still early, the DAA sees an opportunity to proactively address the barriers holding back institutions from capturing this value – whether legal uncertainties or technology challenges.

The DAA’s four key initiatives center around education, standardization, policy advocacy and talent development. Through conferences and working groups, members can learn tokenization best practices from experts across various domains. By facilitating discussion on issues like interoperability, data transparency, and risk management, the DAA aims to develop common standards all ecosystem players can rally around.

Meanwhile, the DAA’s regional chapters will engage with lawmakers and regulators to promote balanced policymaking. And identifying future talent needs, the DAA looks to nurture a workforce fluent in both blockchain and institutional finance through dedicated training programs.

With this multi-pronged effort, the DAA seeks to foster an environment where tokenization can continue evolving responsibly. And the collective expertise of its members should add credibility in pushing the conversation forward with regulators still hesitant about embracing decentralized technologies.

On the startup side, the DAA’s base of institutions and investors can also accelerate the growth of high-potential tokenization ventures. So whether from a startup or enterprise perspective, the DAA looks to advance the entire digital asset ecosystem.

As DigiFT CEO Henry Zhang summarized, “The launch of DAA is meant to be that platform that empowers the financial services ecosystem to unlock the full potential of tokenization.”