During IMF–World Economic Forum week, Paxos CEO and Co-Founder Charles Cascarilla joined Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun at the Atlantic Council for a timely discussion on “The Next Generation of Tokenization and Stablecoin Policy.”

The conversation underscored how regulation, innovation, and institutional adoption are converging to define the next phase of financial infrastructure.

1. Tokenization has reached an inflection point

The discussion made clear that tokenization is no longer theoretical

Institutional adoption has shifted decisively from pilot programs to production, with leading asset managers and financial institutions already launching tokenized products. The focus has moved from experimentation to execution—highlighting a growing consensus that tokenization will underpin the modernization of capital markets.

2. Regulatory clarity is driving institutional confidence


Regulatory progress across jurisdictions is accelerating tokenization’s path to scale. Frameworks like MAS’s upcoming stablecoin framework, the EU’s MiCA regulation, and the U.S. GENIUS Act are establishing consistent principles—such as full reserve backing, segregation of client assets, and redemption at par value—that give institutions the confidence to participate safely and at scale. This global alignment is laying the groundwork for interoperable and trustworthy digital asset markets.

3. Global reciprocity is becoming achievable


As regulatory frameworks converge, the idea of cross-border reciprocity is moving closer to reality. Rather than lowering standards, equivalency across trusted jurisdictions enables stablecoin issuers to operate globally while maintaining rigorous oversight. This creates a foundation for interoperable stablecoins that can move seamlessly across markets without compromising compliance or investor protection.

4. Stablecoins can strengthen monetary systems


The conversation also explored how well-regulated stablecoins can coexist with and even reinforce sovereign monetary systems. By providing transparent, fully backed digital representations of fiat currencies, stablecoins can increase financial inclusion, lower transaction costs, and enhance visibility within financial systems. Properly regulated stablecoins offer policymakers more control and insight than informal or unregulated alternatives.

5. The next wave of adoption will be infrastructure-led


Looking ahead, tokenization’s path to mainstream use will depend on the continued development of enterprise-grade infrastructure and privacy-preserving compliance technology. As markets evolve toward 24/7 settlement, programmable assets, and real-time liquidity management, firms with robust, regulated infrastructure will be best positioned to lead the next generation of global finance.

Paxos is building the regulated infrastructure powering this transformation—creating a trusted foundation for tokenization, stablecoins, and the future of digital finance.