In the evolving landscape of finance, key terms such as blockchain, stablecoins, and tokenization frequently emerge during discussions. Although cryptocurrencies have been around for some time, advancements within decentralized finance (DeFi) are making substantial waves in the financial sector.
At Sibos 2025 in Frankfurt, a notable panel engaged in a conversation titled “Defining Ethics, Trust, and Control in a New Financial Order.” Key speakers included Tobias Adrian, head of capital markets at the International Monetary Fund (IMF); Sarah Hammer, managing director at Charles Schwab; Erica Kostelijk, head of transaction banking at ABN AMRO Netherlands; Sopnendu Mohanty, co-founder and CEO of the Global Finance and Technology Network (GFTN); and Sergey Nazarov, founder and CEO of Chainlink Labs.
Nazarov initiated the discussion on transformation within the financial ecosystem by highlighting three primary trends:
1. The emergence of a parallel financial ecosystem dominated by real-world assets, stablecoins, and tokenized funds.
2. A redefining of trust dynamics—shifting from reliance on institutional reputations to trust derived from technological efficacy; he cited Credit Suisse as an example where reputation failed to prevent collapse.
3. A significant decrease in onboarding costs and complexity, simplifying the integration process for financial institutions.
He stated, “The balance of cryptocurrencies versus real-world assets is set to change. In the future, 90% of the ecosystem will consist of real-world assets and tokenized funds. The blockchain sector will morph to prioritize forms of payment and asset management relevant to traditional finance, crafting a parallel financial system.”
Adrian emphasized the foundational pillars necessary for establishing trust in finance and technology. “The world is undergoing continual change; governments are issuing tokenized bonds, banks are trialing tokenized deposits, and asset managers are engaging in tokenization of various financial instruments. The current financial system is heavily influenced by these technological advancements.”
To build this new framework, he underscored the necessity of:
1. A strong legal foundation to uphold trust and governance frameworks for managing technology.
2. Robust macroeconomic and fiscal frameworks to help governments maintain control amid systemic changes impacting economic activity.
3. Regulatory certainty.
Hammer contributed insights from her experience on a U.S. Senate banking committee, discussing digital assets and stablecoin frameworks worldwide. She articulated the necessity for a clear taxonomy for digital assets and defined regulations for service providers, including custody and wallet security.
“The regulatory framework in Singapore is straightforward, focusing on compliance and anti-money laundering measures. The U.S. has made progress but still has a long way to go in establishing a comprehensive legislative framework for the entirety of digital assets, despite recent efforts by agencies like the SEC and CFTC to enhance regulatory discussions.”
Kostelijk highlighted the excitement surrounding blockchain and tokenization opportunities while also noting the importance of trust and clarity in understanding how digital currencies function. She remarked on the challenges of explaining the nuances of the digital euro to the public, emphasizing concerns over accessibility and security, especially in today’s volatile geopolitical climate.
In response to questions regarding quantum technology, Mohanty pointed out that while APIs and cloud infrastructure have defined banking in the past decade, the next frontier involves AI, tokenization, and quantum computing. He explained the urgent need for quantum-proof encryption standards to safeguard against potential vulnerabilities posed by advanced quantum systems.
As the panel concluded, Nazarov emphasized the critical task of addressing global fragmentation by enhancing interoperability between DeFi systems and traditional financial infrastructures, a consensus shared by fellow panelists.