As we look at the evolution of this space and the eff orts underway globally, it is clear that it is highly improbable that the world will converge on a single blockchain platform that will span the globe and be the “universal ledger” onto which all assets and forms of money will be tokenised.
Not all countries will move towards tokenisation at the same time or same pace, so there will be a need for coexistence between the legacy and new systems for an extended amount of time.
Different commercial banks may choose to use different technologies for tokenised deposits, central banks may use other technologies for their CBDCs, assets will be tokenised on a number of other heterogenous networks based on where there is demand and liquidity, and each system will need to interconnect with a myriad of other systems outside their jurisdiction such as the various DLT and non-DLT based messaging and cross-border payments systems.
As we see the various DLT-based financial networks following a similar trajectory with islands emerging, the question that must be asked is how will we solve the interoperability challenge? What, one might ask, is the TCP/IP of the blockchain era that will allow the TradFi and DeFi worlds to interoperate but also, within each, allow the various tokenised assets, deposits, and CBDC platforms to talk to each other? As with the Internet, it is only through the seamless integration of these networks that the true value can be realised.
