Frank Jons: chromatic explosions!
He could have ended up as a partner in an auditing firm, but a job interview convinced him to follow his true calling: painting. Interview.
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Elise Grazini, Martin Houdbine, Cedric Lalin and Herwig Temmerman (BearingPoint): The Rise of Tokenized Assets: A Financial Revolution in Motion
The tokenization of real-world assets stocks, real estate, and fine art is reshaping financial markets. By leveraging blockchain technology, this innovation enhances transaction efficiency, lowers costs, and opens investment opportunities to a broader audience. Consider BlackRock's BUIDL fund, a tokenized money market fund on Ethereum, which rapidly amassed over $557 million in assets under management. Meanwhile, Luxembourg is hopping on board, positioning itself as a key player in this transformation
Traditional Finance: A System Facing Structural Challenges
The traditional financial system is plagued by inefficiencies such as settlement delays, high transaction costs due to multiple intermediaries, and complex regulatory constraints, making investments less accessible and cross-border operations cumbersome. A recent example illustrates these challenges: in October 2024, Mario Draghi, former President of the European Central Bank, presented a plan to revive the European economy. He highlighted that the fragmentation of European financial markets complicates access to necessary funding due to the separation of national banks and investment funds. This situation emphasizes the urgent need for streamlined financial processes and robust regulatory frameworks, such as the Capital Markets Union, which aims to establish clear rules for financial assets, reduce legal uncertainties, and enhance market accessibility.
Tokenization: A Game-Changer for Finance
Tokenized assets represent a paradigm shift, promising greater efficiency, transparency, and accessibility in financial markets. Blockchain technology enables real-time transaction execution, optimizing liquidity and capital deployment. The automation of compliance through smart contracts significantly reduces administrative costs. Research by the Hong Kong Monetary Authority for example found that tokenization reduces borrowing costs by 0.78% and underwriting fees by 0.22% of the bond's par value. Investment opportunities are also expanding, as platforms like Brickken facilitate fractional ownership of high-value assets, previously reserved for institutional investors. Unlike traditional markets, where trading hours are limited, tokenized securities can be exchanged around the clock, providing investors with enhanced liquidity and greater portfolio diversification. By removing conventional barriers, tokenization is poised to create a more dynamic and inclusive financial ecosystem. As recently highlighted at the 2025 World Economic Forum in Davos, technology is reshaping finance in unexpected ways— in the Gulf states, real estate tokenization is granting retail investors access to previously exclusive assets.
“Tokenized assets represent a paradigm shift, promising greater efficiency, transparency, and accessibility in financial markets.”
Luxembourg: Pioneering Tokenized Finance?
Since 2019, Luxembourg has legally recognized blockchain-based securities transfers, fostering an environment conducive to fintech innovation. Public-private collaborations are also gaining momentum, with government-backed initiatives exploring the securitization of SME credit through blockchain applications. As the host of 60% of Europe’s investment funds, Luxembourg is uniquely positioned to drive the adoption of tokenized financial instruments across the continent. According to Fintech Mt Pelerin, tokenization can reduce operational costs by up to 40%, reinforcing its potential as a key driver of financial efficiency. With a proactive regulatory approach and a strong financial foundation, Luxembourg is establishing itself as a key player in the development of digital assets within the financial market.