According to a recent report by Arthur D. Little, the primary value of tokenisation lies in streamlining settlement processes rather than artificially boosting market liquidity. Arjun Vir Singh, the consultancy's global head of fintech and digital assets, emphasized that while many believe tokenisation is a magic bullet for liquidity, its true potential is found in reshaping how transactions are settled on-chain. As financial systems increasingly migrate to digital infrastructure, banks must move beyond the "if" and focus on the "how," choosing between originating new on-chain products, wrapping existing assets, or forming strategic partnerships.

The report, titled Bank Tokenization: Choosing Between Wrapping & Originating, suggests that most commercial banks will likely find "wrapping" to be the most practical entry point. While staying on the sidelines might be feasible for the short term, the inevitable shift of "Wall Street’s plumbing" toward digital ledgers makes long-term disengagement a risky strategy. With major institutions like the DTCC already exploring digital twin models, banks that fail to adapt risk falling behind in a market that is rapidly evolving toward on-chain efficiency.

Ultimately, the successful adoption of tokenisation will likely mirror maturity in existing markets, such as commodities and money market funds, where demand is already established. While hubs like Dubai have laid a solid foundation by aligning regulated digital environments with real-world ownership, Singh cautions that technology alone cannot manufacture new buyers. Instead, the industry must view tokenisation as a sophisticated tool for improving settlement speed and reliability, ensuring that financial services are fit for the digital future.