Digital assets are moving steadily towards the core architecture of global finance. Tokenisation is progressing from experimental pilots into early commercial deployment, driven by interest in transparency, lifecycle traceability and operational efficiency. As institutional investors broaden their exposure to new asset types, the central challenge is how to integrate these digital capabilities into established governance, risk and regulatory frameworks. Justin Chapman, executive vice president and global head of strategic partnerships, Digital Assets and Financial Markets at Northern Trust, is responsible for shaping the bank’s strategy at this intersection. His remit spans digital-asset infrastructure, market-structure evolution and long-term partnerships with technology and financial institutions. Chapman views digital assets not as a parallel market, but as an extension of the traditional investment universe that must operate to the same standards of control, transparency and resilience. Northern Trust’s approach centres on unifying digital and traditional asset servicing, developing the infrastructure required for new asset classes and ensuring that institutions can adopt digital capabilities at a pace consistent with regulation and market readiness. At the core of this strategy is Matrix Zenith, the bank’s platform for the issuance, administration and lifecycle management of digital assets. Chapman outlines how Northern Trust is positioning this infrastructure, where digital assets are gaining traction and how partnerships will shape the next phase of market development. Digital assets are becoming part of the institutional market Chapman’s starting point is clear: institutional clients do not differentiate between digital and traditional assets. Their focus lies in investability, governance, transparency and liquidity. “Our clients are not too concerned whether an asset is digital or not,” he said. “What they are concerned about is whether they have an investable asset that gives a good return, good governance and transparency and liquidity.” This shapes how Northern Trust develops its digital-asset capabilities. Chapman emphasised the importance of alignment. “We try not to differentiate between a digital asset and traditional asset. So our core strategy at the moment is to align, where possible, the same services and capabilities, where the asset can be serviced in the same way, at the same standard, both from a risk perspective and a regulatory perspective,” he said. Yet digital assets vary significantly in maturity. Some can be integrated into existing processes with minimal change, while others require transitional models until their regulatory and market structures develop further. Education remains a substantial part of Northern Trust’s work. Chapman noted that many institutional investors are familiar with tokenisation in concept but lack clarity on practical workflows, risk controls and settlement mechanics. Their priority is not the underlying technology but the governance structure around it. This shapes the bank’s emphasis on institutional standards and risk frameworks. Chapman distinguishes this institutional view from the volatility often associated with crypto markets. For Northern Trust, digital assets are not defined by speculative behaviour but by how they can support investment mandates and improve operational models. The objective is to bring digital capabilities into the traditional framework, not to replicate retail-driven activity. Matrix Zenith is designed for lifecycle integration Matrix Zenith is Northern Trust’s digital-asset platform for end-to-end issuance and lifecycle management. The platform integrates with traditional rails, including SWIFT and central securities depositories, enabling a single operating model for clients regardless of whether an asset is digital or conventional. Chapman described Matrix Zenith as an “interface integration”, bridging blockchain-based workflows with legacy systems while also being capable of operating independently where no traditional infrastructure exists. Its design reflects the uneven development of digital markets. In some segments, digital bonds or tokenised funds sit atop established processes. In others, such as voluntary carbon credits, infrastructure is fragmented or absent. This dual capability allows Northern Trust to adapt to the different speeds at which markets digitise. For mature asset classes, Matrix Zenith extends existing processes. For emerging segments, it can serve as the primary issuance and administration engine. Chapman emphasised that Northern Trust’s focus is on maintaining consistency for clients while building optionality into the platform as regulatory clarity improves. The platform’s development dates back to 2017, giving Northern Trust a multi-year head start on integrating blockchain technology into its operating environment. Its current evolution reflects the need for interoperability, resilience and the ability to run digital workflows without duplicating legacy processes. Carbon credits show how digital assets can strengthen market credibility Carbon credits have emerged as one of the clearest institutional use cases for digital assets. The market suffers from fragmented registries, inconsistent standards and weak infrastructure, making it difficult for investors to verify the provenance and impact of credits. Chapman highlighted that some markets were lacking underlying systems, creating an opportunity for Matrix Zenith to introduce transparency, integrity and consistency. “Matrix Zenith would allow us to introduce new infrastructure, new efficiency, new transparency, where there was probably not much at all, and a good example of that was carbon credit,” he explained. Tokenisation enables asset creation, transfer, settlement and retirement to be recorded in a verifiable and immutable manner, strengthening confidence in the lifecycle of the credit. He connected this to broader environmental-finance applications such as sustainability-linked instruments and green-bond reporting. Digital infrastructure allows real-time or near-real-time verification of impact data, such as reductions in energy consumption from retrofitted buildings. “We linked it to IoT (Internet of Things), so you can actually start to see the benefit of the investments that NUS made in their infrastructure to reduce their carbon footprint, which is linked to the bond that they raise the money to do it,” Chapman said, noting that this creates a clearer linkage between financing and measurable outcomes. Projects such as the collaboration with the National University of Singapore (NUS) and UOB demonstrate how tokenisation can unify environmental data, governance and reporting standards. These efforts provide a reference point for how digital assets can address structural gaps in emerging asset classes and enable institutional-grade transparency. Institutional adoption requires governance and regulatory clarity The pace of institutional adoption is shaped heavily by regulation. Chapman emphasised that Northern Trust’s ability to provide consistent service across markets depends on the regulatory framework supporting each asset class. Jurisdictional differences remain a constraint, even as global regulators continue to refine digital-asset policies. He stressed the need for digital models to deliver genuine operational value, avoiding unnecessary duplication. The objective is not to run parallel systems but to integrate digital capabilities into the bank’s existing risk and control environment. Chapman underlined that institutional adoption will accelerate only when digital assets can be serviced with the same reliability, oversight and compliance requirements as traditional assets. Interoperability is an essential component of this. As tokenised assets operate across multiple blockchain networks and legacy systems, consistent models for identity, settlement and data flows will become critical. Northern Trust’s work on integrating Matrix Zenith with existing rails reflects this requirement. Chapman expects the next two to three years to bring greater alignment across global regulatory regimes, enabling more predictable market structures. He also noted that quantum computing remains a longer-term risk driver. Although practical threats are still years away, quantum-resistant cryptography has become an area of interest among blockchain providers. Chapman acknowledged the issue as part of the bank’s forward-looking risk agenda, even as the practical solutions continue to evolve, “It is absolutely a consideration. It seems like a long way off, but everyone is talking about how we get a blockchain that works with quantum.” He added, “Everyone talked about their quantum proofing, so we certainly have it on our risk list.” Partnerships will determine how digital markets scale Partnerships sit at the centre of Northern Trust’s digital-assets strategy. Chapman oversees the bank’s relationships across technology vendors, financial institutions, market-infrastructure providers and clients. He described the strategy as a long-term programme built on coordinated development rather than isolated innovation. Chapman stressed that “no firm will be able to do this by themselves”. Digital-asset markets require shared infrastructure, mutual recognition frameworks and consistent data flows. Partnerships enable alignment on standards, reduce duplicated efforts and support institutional adoption. Northern Trust therefore focuses on ten-year strategic relationships rather than short-term engagements. The collaboration with the National University of Singapore and UOB is one example of how the bank tests real-world applications of its infrastructure. Other partnerships include engagement with central banks, blockchain providers and ecosystem participants developing identity, collateral and settlement models for tokenised markets. Chapman expects these relationships to deepen as digital-asset markets mature. He anticipates a future in which banks, custodians, technology firms and market-infrastructure providers collaborate closely on asset mobility, collateral movement and tokenised workflows. Northern Trust anticipates measured institutional growth in digital assets Looking ahead, Chapman sees tokenisation progressing gradually but steadily. Institutional adoption will be led by “real-world assets and payment tokens” rather than speculative crypto activity. “We are seeing a lot of interest in things like real-world assets manifesting themselves,” he remarked. Segments such as carbon credits, sustainability instruments and digital bonds are likely to scale first, supported by clearer regulatory frameworks and stronger market infrastructure along with digital payments such as CBDCs, stablecoins and deposit tokens. His guidance for institutions entering the space is straightforward. Firms should prioritise strong strategic partnerships and work with providers capable of delivering regulated, secure access to digital assets. Chapman noted that institutions “do not need deep technical knowledge” to begin their digital-asset journey, but they do need trusted infrastructure. Matrix Zenith will remain central to Northern Trust’s strategy. The bank plans to continue investing in the platform’s capabilities, strengthening its interoperability and expanding its role across emerging asset classes. Chapman’s view is that digital assets will become part of the institutional market not because they are novel, but because they enhance transparency, efficiency and the alignment of capital with measurable impact. Digital assets require infrastructure, not momentum Northern Trust’s digital-asset strategy reflects the priorities of institutional finance. The focus is on infrastructure, governance and lifecycle integrity rather than speculative enthusiasm. Matrix Zenith provides the foundation for integrating digital and traditional assets in a controlled and scalable way, supporting emerging segments such as carbon credits and sustainability-linked instruments while maintaining compatibility with established market rails. Chapman’s perspective underscores that the long-term success of digital assets depends on regulated infrastructure, transparent data and collaborative market development. As tokenisation expands across asset classes, institutions will adopt digital capabilities where they strengthen existing models, provide operational advantages and allow capital to flow with greater accountability. The future of digital assets lies in disciplined market architecture, not in the excitement that often surrounds new technologies.
