SS&C to accept digital cash for tokenised investments

SS&C Technologies Holdings is planning to adopt digital cash such as stablecoins and tokenised commercial bank deposits during the transactions of tokenised investments.

The planned capabilities are designed to support future atomic settlement, SS&C said, while reducing settlement risk, improving operational efficiency and simplifying cross-border investment transactions as digital markets continue to evolve.

The announcement also builds on the launch of SS&C's live tokenised fund issuance and distribution capabilities earlier this year following the acquisition of Calastone a year prior.

SS&C said it already enables asset managers to bring tokenised versions of traditional investment funds to market through the infrastructure, and together with SS&C's existing tokenised fund issuance and distribution capabilities, the enhancements create a pathway to further extend the practical application of tokenised investment products.

Further details regarding product availability and implementation timelines will be available in due course, SS&C said.

Commenting, SS&C general manager of global investor and distribution solutions Nick Wright said tokenised investments are slowly emerging as one of the main investment vehicles for investors.

"Tokenised funds are becoming another mainstream investment structure alongside mutual funds and ETFs. As asset managers begin supporting these products in production, they need infrastructure that evolves with them," Wright said.

"The announcement represents another step in helping clients make that transition, building on our live tokenised fund issuance and distribution capabilities with the digital cash settlement infrastructure needed to support the next stage of market adoption.

"Following the acquisition of Calastone, we have continued to invest in expanding these capabilities, helping clients adopt digital investments with confidence while leveraging the scale, resilience and connectivity they already rely on."

The sentiment echoes soundly domestically, reflected by the latest findings from Project Acacia, highlighting tokenisation can inject some $24 billion to Australia's economy.

Earlier this year, the government swiftly passed the Digital Assets Framework Bill, requiring digital assets providers to obtain an Australian financial service licence (AFSL).

Swyftx was the latest to join the lineup, which allowed the exchange to handle retail derivatives, basic deposit products and NCP facility authorisations. Coinbase and OKX currently hold a similar AFSL.

Further, ASIC has announced a three-month extension for those that are not yet compliant with the scheme, now expiring on September 30.

Swyftx interim co-chief executive Andrea Yuen said: "It's an enormous responsibility to be a regulated financial service and we'll continue to work non-stop to offer products that improve the lives of everyone who uses Swyftx."

"Looking ahead, we want to use a well-regulated Australian market as a base to expand our presence overseas and become the Web3 provider of choice for both domestic retail and business clients."

The business acquired New Zealand's digital currency brokerage Easy Crypto and a boutique crypto brokerage and asset manager Caleb & Brown last year.