Banking Digital Assets (BDA) are revolutionizing the industry by enabling cross-platform experiences and supply chain transparency.
BDA refers to the growing range of services that banks offer for digital representations of value, such as cryptocurrencies, stablecoins, and tokenized assets. Banks are increasingly integrating these assets into their traditional financial systems, offering services like custody, trading, and asset management.
What are digital assets?
- Cryptocurrencies: Decentralized digital currencies like Bitcoin and Ethereum.
- Stablecoins: Digital assets pegged to a stable reference (e.g., the US dollar) to minimize volatility, often used for payments and trading.
- Central Bank Digital Currencies (CBDCs): Digital versions of a country's fiat currency issued and backed by the central bank.
- Tokenized Assets: Digital representations of real-world assets like real estate, art, or bonds, which can improve liquidity and access through fractional ownership.
Banks are increasingly adopting digital asset strategies to meet client demand and prepare for the future of finance, with some institutions like Standard Chartered and Sygnum establishing dedicated digital asset divisions or becoming fully regulated digital asset banks.
