Tokenization took center stage as the future of finance took a dramatic turn at the World Economic Forum in Davos, where central bankers, crypto executives, and global bankers openly debated who should control the next phase of money. With crypto markets trading close to record levels, discussions around tokenization, Bitcoin’s role, and central bank digital currencies (CBDCs) revealed a deep divide over how digital finance should evolve.
What was once a theoretical idea is now moving into real-world use. Banque de France governor François Villeroy de Galhau described tokenization as “the name of the game this year,” pointing to its potential to lower transaction costs and improve settlement systems. A joint pilot project with Euroclear is already testing tokenized commercial paper in France — a market worth around €300 billion.
Standard Chartered CEO Bill Winters said the industry has reached a turning point. While regulation across more than 60 jurisdictions will slow progress, he believes most financial assets will eventually exist in digital form. Euroclear CEO Valérie Urbain echoed that view, arguing tokenization could widen access to capital markets and support financial inclusion by bringing more investors into the system.
Coinbase CEO Brian Armstrong pushed an even bolder vision. He said tokenization could open investment access to roughly 4 billion adults who currently lack it, while also laying the foundation for what he called a “Bitcoin standard.” In his view, crypto could become a new form of sound money, resistant to inflation and better suited for a world struggling with government deficits.
That idea quickly met resistance. Villeroy warned that handing control of money to private digital tokens could weaken democracy itself. He stressed that money remains a public responsibility, with CBDCs acting as a stable anchor. Without firm rules, he cautioned, poorly regulated private money could dominate everyday payments, leaving official digital currencies sidelined.
Ripple CEO Brad Garlinghouse highlighted how fast tokenization is already growing. Stablecoin transactions jumped from $19 trillion in 2024 to $33 trillion in 2025, a 75% increase. On the XRP Ledger alone, tokenized assets surged more than 2,200% last year. He also noted that U.S. politics have shifted toward a more crypto-friendly stance after years of legal battles and uncertainty.
Regulation remained a flashpoint. Armstrong criticized lobbying efforts tied to the stalled U.S. CLARITY Act and the debate over banning stablecoin rewards. He warned that limiting yields would simply drive activity offshore, hurting Western competitiveness. Villeroy rejected the idea of interest-paying digital euros, arguing that innovation without regulation risks financial instability.
Emerging markets added another layer to the debate. Winters cautioned that tokenization could lead to widespread dollarization in some economies, even as it lowers cross-border costs. Villeroy pointed out that countries like Brazil and India already lead in fast payments through Pix and UPI, while remaining cautious about blockchain currencies.
Environmental concerns surfaced briefly. Garlinghouse emphasized that proof-of-stake blockchains consume far less energy than proof-of-work systems, noting most stablecoin activity now runs on more efficient networks like Ethereum after its transition.
All of this unfolded as crypto prices remained strong. Bitcoin hovered just below $90,000 on Jan. 22, 2026, while Ether traded near $3,000. Tether’s USDT stayed close to its dollar peg, with daily trading volumes exceeding $110 billion.
The message from Davos was clear: tokenization is no longer experimental. But as private innovators and public institutions clash over standards, sovereignty and control, the rules of the tokenized future are still very much up for debate.
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