Tokenization Takes Center Stage at the World Economic Forum
The World Economic Forum in Davos has become a hub for discussions on the future of finance, and this year’s event was no exception. Central bankers, CEOs, and industry experts gathered to debate the latest trends and innovations in the financial sector. One topic that dominated the conversation was tokenization, with many agreeing that it has moved from hype to actual deployment. According to Banque de France Governor François Villeroy de Galhau, tokenization is “the name of the game this year” and promises to bring about significant advancements in global finance, delivery versus payments, and reducing the cost of financial transactions.
Tokenization: From Hype to Reality
Moderator Karen Tso opened the discussion by recalling the early days of tokenization, noting that it has evolved significantly since then. Bill Winters, CEO of Standard Chartered, argued that the industry is now at a “major tipping point” and that “everything will eventually settle in a digital, digitized form.” Valérie Urbain, CEO of Euroclear, described tokenization as an evolution of securities markets that can “reach a wider range of investors” and “give many more people access to finance.” A joint pilot project with the Banque de France aims to symbolize the French commercial paper market, which is around “300 billion euros… small enough to ensure that we can all learn from it and see how we can implement this initiative more broadly.”
Democratization, Bitcoin Standard, and Sovereignty
Coinbase CEO Brian Armstrong pushed the access narrative, arguing that tokenization can democratize access to investing in high-value products. He pointed to an “unmediated” world of “approximately 4 billion adults who do not have access or the ability to invest in high-value assets like the U.S. stock market or real estate.” Armstrong called crypto the birth of a “new monetary system that I would call the Bitcoin standard instead of the gold standard… a return to sound money and something that is resistant to inflation.” However, Villeroy de Galhau responded bluntly, warning that ceding money to private tokens endangers democracy and that monetary policy and money are part of society.
Stablecoins and Regulatory Challenges
Ripple CEO Brad Garlinghouse emphasized the growth of stablecoins, citing a surge in volume from $19 trillion to $33 trillion. He argued that the United States has moved from “fairly open hostility” toward cryptocurrencies to a “much more crypto- and innovation-friendly Congress.” However, the industry still faces regulatory challenges, with the stalled U.S. Clarity Act and the ongoing fight over stablecoin rewards. Armstrong warned that a ban on rewards would simply move activity offshore and undermine the competitiveness of the US and Europe.
Emerging Markets and Dollarization
The panel discussed the implications of tokenization for emerging markets, with Winters warning that it could mean “full dollarization” for some countries. Villeroy de Galhau pointed out that some G20 emerging countries have openly argued for a ban on cryptos, citing sovereignty fears. However, he noted that countries like Brazil and India are already world leaders in fast payments using Pix and UPI, even as they remain cautious about on-chain currencies.
Crypto Prices and Market Trends
The debate in Davos took place against a market backdrop in which Bitcoin is trading just below the psychological six-figure mark. As of January 22, 2026, Bitcoin is changing hands at around $89,800 to $90,000. The market is increasingly underpinned by the tokenization narrative, with Ether sticking to the tokenization narrative that increasingly underpins it: about $3,000 per ETH. Tether’s USDT, the largest stablecoin and de facto settlement vehicle for much of this ecosystem, is trading near-perfectly on the exchange at about $0.9992.
These numbers underscore the panel’s central tension: a crypto market already operating in the multi-trillion-dollar range, while policymakers, bankers, and developers publicly argue over who will ultimately write the rules for the tokenized future. For more information, visit https://crypto.news/tokenization-boom-pits-bitcoin-standard-vs-cbdc-guardrails-at-the-world-economic-forum/
