Tokeni- sation of traditional securities

A strategic evolution in market infrastructure

- WIEHANN OLIVIER

THE CONVERGENCE of blockchain technology with traditional financial markets is no longer speculative—it is a structural shift redefining how investors access, trade, and interact with listed securities.

In South Africa, this transformation is already underway, with cryptocurrency exchanges offering tokenised versions of foreign-listed shares. This signals a broader global movement toward more inclusive and efficient capital markets.

As tokenisation matures, virtual asset service providers and blockchain infrastructure are poised to challenge the dominance of traditional platforms used to access locally-listed investment products. The competitive landscape is shifting, driven by demand for faster settlement, lower costs, and broader asset availability.

Tokenisation refers to the creation of a blockchain-based digital asset that mirrors the economic exposure of a traditional security. Unlike cryptocurrencies such as Bitcoin, which derive value from fixed supply, decentralised consensus, network security, and their role as a store of value, tokenised securities are backed by real-world assets.

This distinction is critical for traditional investors who often struggle to reconcile the abstract and technological value of crypto with the tangible fundamentals of equity markets.

Beyond digitisation, tokenisation represents a reimagining of market infrastructure. It streamlines settlement, reduces barriers to entry, and expands access to global investment opportunities.

Blockchain technology has become the catalyst for what will be known as the digital economy, a defining feature of the Fourth Industrial Revolution.

How tokenisation works