Digital assets in banking: A regulatory target operating model for payments

Abstract

Traditional banks are increasingly adopting blockchain use cases and digital assets to expand their product offering to open up new revenue streams and meet the demands of today’s customers. However, while engaging with digital assets can present incumbent financial institutions with many opportunities, the regulatory landscape is complex and there are various risks associated with compliance. As this paper will discuss, mitigating these risks and successfully operating a digital asset payment offering as a fully regulated bank requires a robust risk framework, streamlined and automated processes embedded into scalable RegTech solutions, as well as suitably trained staff.