Summary of Panel at WEF 2024 brought forward by Kannan Ramaswamy
● Basak Toprak – EMEA Head Coin Systems, JP Morgan Onyx
● Duncan Moir – Sr. Investment Manager Alternatives, abrdn
● Kannan Ramasamy – Executive Chairman, Vayana
● Toni Caradonna – Partner, Blockchain Trust Solutions
● Greg Scullard (Moderator) – Executive Director EMEA, Swirlds Labs
The recent panel discussion at The World Economic Forum 2024, brought together experts from the finance and blockchain sectors to explore the evolving landscape of stable coins and their impact on the financial markets.
1. Stable Coins in Asset Classes: The panel began by acknowledging the growing market for stable coins within asset classes like cash and money market funds. Stable coins have already established a strong foothold in these areas, providing a stable and efficient means of transacting in the digital market.
2. Corporate Bonds as the Next Frontier: The conversation then shifted to the potential for stable coins and Central Bank Digital Currencies (CBDCs) to make their mark in the corporate bond market. The panel speculated that corporate bonds could be the next frontier for these digital currencies, offering new opportunities for liquidity and efficiency.
3. Public and Private Blockchains: A noteworthy discussion emerged regarding the compatibility of public and private blockchains when expanding asset classes. The panel agreed that these blockchain types could coexist harmoniously to create productive use cases for clients. The key lies in blending permissionless and permissioned features to ensure access to liquidity providers while maintaining data privacy for participating nodes.
4. Real World Assets (RWA): Vayana discussed the importance of incorporating Regulated Digital Assets and Real World Assets (RWA) into the stable coin and CBDC ecosystem. This could include B2B Trade Finance and other credit products, opening up a whole new dimension of possibilities for these digital currencies.
5. Growth Potential in APAC: Vayana also provided valuable insights into the growth potential of stable coins and digital currencies in the Asia-Pacific (APAC) region, particularly in the realm of B2B credit. The region has garnered significant attention from Private Equity, with Assets Under Management (AUM) reaching $2.9 trillion in 2023, twice that of Europe and half that of the US. However, the Private Equity to Private Credit ratio of 30 in APAC, compared to 5 in the US and 3 in Europe, suggests an
untapped opportunity for transformation. Additionally, with a projected GDP growth rate 2% higher than the US and Europe over the next 3-5 years, APAC presents a promising landscape for stable coin and CBDC adoption.
In conclusion, the panel aligned on the prospect that asset classes utilizing Regulated Stable Coin as a source of liquidity are positioned for growth. This optimism is founded on the anticipation of emerging productive use cases from Real World Assets (RWA) and the robust support from the financial ecosystem, including custodians, brokers, exchanges, and marketplaces, facilitating widespread distribution.
About Vayana & it’s RWA Debt Marketplace SaaS:
Vayana aims to provide affordable and timely trade credit to MSMEs / micro-entrepreneurs and trade-linked industries that are neglected by formal finance, through a wide range of institutional and accredited lenders. We use the democratizing approach of Platforms, Pipes, Possibilities, alongside futuristic technological interventions such as blockchain, CBDC infrastructure, and tokenization, to route capital to businesses.
One of our key offerings is the Vayana Debt Platform, a comprehensive blockchain-based Loan Operating System for Digital Currencies / Deposit Tokens / CBDC / Fiat. VDP enables regulated/alternate lenders and other credit investors to lend to businesses on the Blockchain, harnessing the power of smart contracts to fully digitize their lending operations.