With the worldwide digital asset market projected to hit $16 trillion by 2030,
\nthe race to weave blockchain technology into the fabric of global finance is
\nrapidly heating up. Turning the immense potential into reality, however, will
\nrequire more than just speed. Economies and financial institutions need a clear
\nroadmap to move forward, anchored in strong legal frameworks and smart risk management.\n<\/p>\n
Experts emphasize that winning in the multi-trillion-dollar digital asset and
\ntokenized asset market is no simple tech sprint. It\u2019s experiencing a sweeping transformation
\nthat calls for a blend of strategic vision, airtight regulation, agile risk governance,
\nand unified commitment from the top down.<\/p>\n
Booming market<\/b><\/p>\n
According to forecasts from Boston Consulting Group (BCG), the digital and
\ntokenized asset market is heading into a decade of explosive growth. From a modest
\n$300 billion in 2022, the market is expected to reach $16 trillion by 2030. In an
\neven more optimistic scenario, that figure could soar to as high as $68 trillion.
\nBCG attributes this extraordinary expansion to three key drivers.<\/p>\n
The first is a clearer regulatory framework. As governments worldwide refine
\nlaws and regulations, a more transparent and secure playing field will emerge. <\/p>\n
The second is intergenerational wealth transfer. Younger generations, raised
\nin the digital era, tend to be more open to and interested in alternative investments
\nsuch as digital assets. <\/p>\n
And the third is market appeal. Asset tokenization opens a new gateway for
\ninvestors to access markets. Blockchain technology \u201cdemocratizes\u201d access to tokenized
\nand digital assets, attracting a vast pool of investors.<\/p>\n
However, the market\u2019s development is not uniform across the globe. <\/p>\n
Speaking at the recent \u201cDigital Assets:
\nTransforming Financial Markets\u201d conference hosted by Var Meta in Hanoi,
\nMr. Jeffrey Tchui, Vice President and Head of APAC Ecosystem at the Hedera Foundation,
\nnoted that the level of adoption for asset tokenization technology depends heavily
\non each country\u2019s legal framework.<\/p>\n
In major financial hubs such as Hong Kong (China), Singapore, and Japan, open
\nregulatory environments and high-quality talent pools have made it easier to test
\nand adopt the technology. In contrast, in many developing markets, the technology
\nremains confined to tightly controlled regulatory sandboxes, largely serving traditional
\nfinancial activities.<\/p>\n
Against this backdrop, Vietnam is adopting a proactive stance, having officially
\nlaid the initial legal foundations for digital assets. The upcoming pilot of a tokenized
\nasset exchange at its planned international financial center is expected to be a
\nbreakthrough step, helping Vietnam integrate more deeply into the global fintech
\nmarket.<\/p>\n
Regulation key<\/b><\/p>\n
As digital assets gain ground, security and risk management have become critical
\nconcerns. Lessons from Thailand and Malaysia show that a strong legal framework
\nis the bedrock of trust.<\/p>\n
In Thailand, custodial risk is addressed through strict regulations; a response
\nto the collapse of FTX, once the world\u2019s second-largest crypto exchange and
\nvalued in the tens of billions of dollars. \u201cExchanges, brokers, and investment funds
\nmust keep 90 per cent of total assets in cold wallets managed by a licensed third-party
\ncustodian,\u201d Mr. Arthit Sriumporn, Founder and CEO of Rakkar Digital, explained.
\nThis separation of control prevents exchanges from misusing customer funds, ensuring
\nmost assets are held securely by an independent, regulated entity.<\/p>\n
To maintain daily liquidity, exchanges can keep up to 10 per cent of assets
\nin hot wallets under their own management, with constant rebalancing between hot
\nand cold storage to meet withdrawals while maximizing safety.<\/p>\n
In Malaysia, regulatory oversight is equally strict. \u201cAnyone operating an asset
\ntokenization platform must be licensed by the Securities Commission, and comply
\nwith all stringent rules,\u201d said Ms. Selvarany Rasiah, Founder and CEO of KLDX. The
\ncountry enforces a Group Technology Risk Management (GTRM) framework across all
\nlicensed entities, ensuring they meet the highest security standards, on par with
\ntraditional financial institutions.<\/p>\n
She noted that blockchain does not create new risks but requires tailored management,
\nespecially across multiple chains or in DeFi (decentralized finance). \u201cThe risks are
\nsimilar to those faced by traditional stock exchanges, from custody to security,\u201d
\nshe explained, emphasizing the need for robust internal controls such as multi-factor
\nauthentication, alongside using reputable cloud service providers to guard against
\ncyberattacks.<\/p>\n
Business before tech<\/b><\/p>\n
With their vast potential, digital assets are drawing increasing interest from
\nbanks and financial institutions. But for those looking to enter the space, experts
\nshare one core piece of advice: start with the business case, not the technology.<\/p>\n
\u201cI\u2019ve worked with many financial institutions and banks on digital transformation
\nprojects, such as core banking solutions,\u201d Mr. Tchui said. \u201cThe focus is often on
\nrisk management and risk profiles. Innovation teams usually work with business teams
\nto explore new technologies. But I urge banks and financial institutions not to
\ntake a technology-first approach to blockchain, because it won\u2019t solve the underlying
\nbusiness problem.\u201d<\/p>\n
He pointed to digital asset custody as an example. Starting from the tech side
\ncan often bog down complex discussions about wallets and private keys, confusing
\nbusiness teams and leaving IT unable to offer support since it falls outside standard
\noperational processes.<\/p>\n
Instead, he recommended creating a sandbox targeting a specific market with
\na clear deployment goal, avoiding far-fetched use cases with no clear destination,
\nwhile actively engaging with the community, platforms, and custodians to learn from
\ntheir experience and define a clear role in the risk management journey.<\/p>\n
According to Ms. Rasiah, successful digital asset adoption rests on three pillars.<\/p>\n
The first is regulatory
\nclarity. \u201cThis is the most critical factor,\u201d she continued. \u201cWithout it, banks,
\nbound by strict risk management, will struggle to proceed. Ecosystem partners and
\ninvestors will hesitate, and scaling will be difficult.\u201d She added that regulators
\nshould apply traditional financial rules to tokenized assets. <\/p>\n
The second is market
\nand investor education, to build understanding and consensus. A major challenge,
\nMs. Rasiah believes, is ignorance leading to fear of unknown risks. Education must
\nstart at the top: Boards of Directors need to know why this matters and the competitive risks of moving too slowly.
\nThat knowledge should then cascade down to managers and staff. The entire partner
\necosystem, including custodians, law firms, and auditors, must also be educated
\nso that all parts of the chain operate smoothly in a new environment.<\/p>\n
And the third is identifying
\na concrete use case and market need. There must be a clear business problem to solve:
\nWhy tokenize an asset? What customer issue does it address? <\/p>\n
Vietnam is now entering a pivotal stage in its digital asset development strategy.
\nAccording to Mr. Frank Le, Head of Growth at Var Meta, pilots such as stablecoin
\npayments in central Da Nang city exhibited the clear real-world potential when banks,
\ntechnology, and government work hand-in-hand. \u201cWhen Vietnam\u2019s Law on Digital Technology
\nIndustry takes effect and the government sets out a clear legal framework, it will
\nmark a crucial moment in the country\u2019s digital transformation,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"With the worldwide digital asset market projected to hit $16 trillion by 2030, the race to weave blockchain…\n","protected":false},"author":2,"featured_media":133463,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[9,79,11715,13782,11441,18,35567,2644,78968,78969,78970,19,41586,70265,40506,3442,17,188,5,790,19363,78966,78967],"class_list":{"0":"post-133462","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-breaking-news","9":"tag-business","10":"tag-commodity","11":"tag-corporate","12":"tag-economic-news","13":"tag-eire","14":"tag-equity-markets","15":"tag-finances","16":"tag-financial-market-news","17":"tag-foreign-exchange-news","18":"tag-fund-markets","19":"tag-ie","20":"tag-industrial-news","21":"tag-initial-public-offerings","22":"tag-international-relations","23":"tag-investing","24":"tag-ireland","25":"tag-markets","26":"tag-news","27":"tag-politics","28":"tag-securities","29":"tag-vet-exclusive","30":"tag-vietnam-economic-times"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/133462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=133462"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/133462\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/133463"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=133462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=133462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=133462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}