A Method for Uncovering Tokenisation Archetypes and their Effects: Thus Spoke Switzerland

Abstract

This paper proposes a framework for aggregating and categorising viewpoints on fundamental issues concerning tokenisation and assessing the causal effects of tokenisation on market outcomes, using bonds as a case in point. The framework starts with a taxonomy for classifying bond tokenisation use cases according to the tokenisation model, which is fed into a causal model to assess the question: If a bond had been tokenised instead of using the traditional infrastructure, how would the outcomes, characterising its lifecycle processes, change? Or, alternatively, how would the outcomes of interest change if a bond had been exchanged in the traditional infrastructure instead of being tokenised? The paper then proposes an outcomes matrix to estimate the effects of tokenisation on particular outcomes for which there are 25 metrics. The framework is then employed to conceptualise Switzerland's tokenisation approach and evaluate present bond tokenisation effects on efficiency and liquidity.

Keywords: Distributed Ledger Technology (DLT), Bond Tokenisation, Digital Currency, Taxonomy, Counterfactual Reasoning, Outcomes Matrix

JEL Classification: C18, C21, C81, G10