ISDA and Ant Urge Common Framework for Asset Tokenisation

Blockchain Solution for Cross-Border Payments

A joint report from ISDA and Ant International reveals that tokenized bank liabilities could reduce cross-border transaction costs by 12.5%, potentially saving businesses $50 billion annually by 2030. These findings emerge from Singapore’s Project Guardian, a MAS-led initiative exploring asset tokenization to enhance market efficiency.

Industry Leaders Establish Framework

The FX working group includes:

• ISDA (derivatives market authority)

• Ant International (digital payments leader)

• Major banks (BNY Mellon, HSBC, OCBC)

• Global Foreign Exchange Division

Together, they’re developing:
✔ Standardized data protocols
✔ Unified risk management guidelines
✔ Interoperability frameworks

“This collaboration ensures tokenization scales safely across markets,” notes an ISDA representative.

Whale Platform Proves Concept Works

Ant International’s blockchain-based Whale platform demonstrates real-world success:

• Processes 35%+ of Ant’s wholesale transactions

• Enables real-time, multi-currency settlements

• Reduces payment times from days to minutes

• Lowers costs by 40-60% per transaction

“Our results validate tokenization’s transformative potential,” says Kelvin Li, Ant’s Platform Technology GM.

The $120 Billion Problem With Traditional Systems

Current cross-border payments face multiple pain points:
✓ Limited operating hours (only 5-8 hours daily)
✓ Fragmented messaging standards
✓ Time zone mismatches
✓ Multiple intermediary banks

These inefficiencies cost businesses approximately $120 billion yearly in excess fees and delays.

The Path to Widespread Adoption

While promising, challenges remain:

1. Regulatory alignment across jurisdictions

2. Technical standardization between platforms

3. Risk management protocols for 24/7 markets

“Tokenization will only reach its potential through coordinated industry effort,” emphasizes ISDA CEO Scott O’Malia. “We’re building the foundation for safe, global implementation.”

The Future of Global Payments

As Project Guardian progresses, the financial industry anticipates:
→ Expansion to 10+ currency corridors by 2025
→ Participation from 50+ banks worldwide
→ Potential $100 billion+ annual savings by 2035

This shift represents not just cost savings, but a fundamental reimagining of how global businesses move money across borders.