Building the Foundations of Trust: Evolving the Role of Custody in the Tokenization of Real-World Assets
GDF, Deloitte and Zodia Custody have collaborated on a report: ‘Building the Foundations of Trust: Evolving the Role of Custody in the Tokenization of Real-World Assets’.
As tokenization gains momentum in financial markets, digital asset custody lies at the very heart of this transformation. Yet, with this evolution comes complexity.
Under the co-chairship of Deloitte and Zodia Custody, the GDF Digital Asset Custody x Tokenization Working Group set out to analyze these complexities and shed light onto how, in a tokenized financial system, custody is not just about safekeeping – it becomes a gateway to interoperability, compliance and, ultimately, trust. Custodians are being asked to do more than ever before: integrate with smart contracts, support cross-chain infrastructure, safekeep private keys and manage these on-chain assets’ programmable features and real-time settlement mechanics.
Industry dialogue facilitated through this Working Group and subsequent report examines how custody models are evolving to meet these demands and what it means for the future of institutional tokenization, and highlights areas where greater clarity, coordination, and standardization could meaningfully advance adoption.
With that in mind, this report sets out four areas for consideration for industry stakeholders, regulators, and policymakers – all outlined in further detail in the report:
- Clarify the Legal Status of Digital Books & Records,
- Improve Cross-Jurisdictional Understanding of DLT Recognition,
- Promote Consistent Risk-Weighted Capital Treatment, and
- Enhance Transparency Around Custody Liability and Operational Risk.
GDF looks forward to continued engagement with both the private and public sectors to support unlocking the full benefits of tokenized finance in capital markets enabled by robust digital asset custody services.