The rational t for a shared ledger – a conversation with Ivica Aračić, SWIAT

In this episode of the Inside Digital Assets podcast with Ivica Aračić, CTO of SWIAT, on digital assets, DLT, tokenization, shared ledgers, Regulated Layer One, central bank money and regulated financial market infrastructure.

How can digital assets scale in regulated capital markets? This question is at the heart of the latest episode of Inside Digital Assets. Host Lidia Kurt speaks with Ivica Aračić, CTO of SWIAT, about distributed ledger technology, tokenized securities, shared ledgers, central bank money and the future of regulated financial market infrastructures.

From Pilot Projects to Productive Use

In recent years, the market for digital assets has evolved significantly. While DLT applications in capital markets were long tested mainly in pilot projects, productive solutions and real transactions are now increasingly emerging.

SWIAT was founded in 2022 from an initiative by DekaBank and develops infrastructure for regulated digital assets. Its focus is on tokenization, settlement, delivery versus payment and the technical foundation for digital securities in regulated financial markets.

Why Shared Ledgers Matter

In the conversation, Ivica Aračić emphasizes that the value of DLT does not lie solely in the digitization of individual financial instruments. What is crucial is the ability to bring different market participants together on a shared infrastructure.

A single global ledger for the entire financial market is unrealistic. Instead, the goal should be a consolidated and interoperable set of ledgers. This could allow issuers, banks, trading venues, settlement infrastructures and payment providers to work together more efficiently.

Regulated Layer One as Neutral Infrastructure

One of the central topics of the episode is Regulated Layer One. The idea behind it is a neutral, open and regulatory-compatible base layer for digital financial market infrastructure.

This infrastructure is not intended to serve as a source of competitive differentiation for individual providers. Instead, competition should take place on the layers above it, for example in digital assets, applications, services and financial services. For regulated financial institutions, governance, risk management, compliance and clear responsibilities are key.

Central Bank Money and the Cash Leg

For digital assets to scale in capital markets, suitable means of payment for settlement are needed alongside tokenized securities. Central bank money plays an important role here, as many traditional securities transactions are currently settled in central bank money.

In the podcast, initiatives such as Appia and Pontes are mentioned as important building blocks. They could help establish a connection between central bank money, tokenized assets and regulated market infrastructures.

What Is Still Missing

Despite significant progress, DLT-based financial instruments still need to be further aligned with traditional securities from both a regulatory and operational perspective. Ivica Aračić argues that digital assets need to become “first-class citizens” in financial markets.

This includes areas such as eligibility criteria, collateral management and access to central bank liquidity. Only once tokenized securities are treated equally in these areas can DLT fully unlock its potential in capital markets.

Conclusion

The podcast episode shows that the scaling of digital assets does not depend solely on individual tokenization projects. What is decisive is interoperable, neutral and regulatory-compatible infrastructure.

Shared ledgers, Regulated Layer One, central bank money and efficient settlement are key building blocks for the next phase of development in digital capital markets.

Key topics: tokenization, digital assets, tokenized securities, blockchain, smart contracts, secondary market, settlement, custody, real estate tokenization, pre-IPO shares, private equity, BX Digital, Seturion, ISP Group, digital capital market infrastructure.

Subscribe to our Spotify channel so you don’t miss any new episodes of Inside Digital Assets!