Tokenization News – The Bank for International Settlements (BIS) Basel Committee has started exploring ways to reduce risks in permissionless blockchain tokenization.
Announced on July 14, 2025, this initiative aims to make the technology safer for global banking. Permissionless blockchain, like Ethereum, allows anyone to participate, which brings opportunities but also challenges that the committee wants to address.
Tokenization on a permissionless blockchain involves turning assets into digital tokens that can be traded by anyone. This openness makes it popular, but it also raises concerns about security, fraud, and regulation.
The BIS Basel Committee, which sets banking standards worldwide, is studying how to manage these risks.
“The goal is to protect banks and investors while supporting innovation.”
The committee will look at issues like cyberattacks and money laundering, which can be harder to control on open blockchains.
They plan to suggest guidelines that banks can follow to use tokenization safely. For example, they might recommend better security checks or ways to track transactions.
This could help banks feel more confident about adopting the technology for assets like loans or securities.
Financial experts see this as a positive step toward balancing innovation and safety. However, some worry that strict rules could slow down progress.
The BIS is working with banks and tech experts to find a middle ground, ensuring the guidelines are practical. The findings, expected later this year, could shape how tokenization grows globally.
The market is watching closely, with mixed reactions. Some see it as a way to build trust, while others fear it might limit freedom.
This exploration by the BIS could lead to a safer tokenization future, making it a key topic for banks and investors in 2025 and beyond.
