Digital assets have matured dramatically over the past decade, moving from speculative investments to established components of the global financial system. Nikhil Joshi, chief operating officer of EMURGO - a founding entity of the Cardano blockchain - recently shared his perspectives on this transformation at the Singapore Fintech Festival. Drawing from his background in both traditional finance and blockchain, Joshi discussed EMURGO’s role in promoting asset tokenisation, stablecoins, and interoperability, all while navigating Asia’s forward-thinking regulatory landscape. He outlined EMURGO’s role in contributing to digital finance, fostering an environment conducive to institutional adoption, and paving the way for a more inclusive and decentralised financial (DeFi) system.

Institutional adoption of digital assets

As digital assets evolve, they are increasingly being recognised as viable financial instruments by institutional players. Joshi reflected on the significance of Bitcoin’s journey from a niche interest to a recognised asset, particularly with the advent of Bitcoin exchange trade funds (ETFs), which he described as "a flag in the sand for digital assets in traditional finance." Bitcoin ETFs mark an important milestone in validating digital assets and integrating them with established financial frameworks.

However, Joshi emphasised that EMURGO’s focus extends beyond Bitcoin to the broader potential of programmable assets like Cardano’s ADA. “Institutions are looking for more than just speculative opportunities,” he explained. “They’re seeking utility in digital assets, particularly as tools for enhancing operational efficiency in areas such as settlement, liquidity, and fractional ownership.” EMURGO seeks to meet these demands through Cardano’s infrastructure, which offers institutions scalable and sustainable options, setting it apart from earlier blockchain models.

Joshi noted that many institutions have begun viewing blockchain not merely as a technological novelty but as a strategic asset that can solve back-office challenges. This shift toward practical applications represents a major evolution, he said, where “blockchain’s maturity is marked by its transition from a speculative asset to a structural component of finance.”

Asset tokenisation and DLT

EMURGO’s advancements in asset tokenisation and stablecoin development exemplify the practical applications of digital assets in traditional finance. At the centre of EMURGO’s tokenisation initiatives is the USDA stablecoin, built on Cardano. Launched in partnership with Encryptus, USDA provides a secure, compliant means for institutions to access stable, cross-border transactions and asset tokenisation.

“Stablecoins were initially used to hedge against crypto volatility, but they have since evolved into instruments with far broader applications,” Joshi said. He explained that today’s stablecoins support complex functions such as lending, borrowing, and yield generation, bridging the gap between traditional finance and blockchain. EMURGO’s USDA stablecoin aims to provide a trusted on-ramp for institutions seeking stable, regulated digital assets, a crucial need as the financial sector integrates tokenised assets.

Beyond stablecoins, EMURGO is collaborating on projects to tokenise a variety of real-world assets. Recent partnerships also welcomed the first tokenised gold assets on the Cardano network, Kinka Gold, with Japan’s UNBANKED Inc.  EMURGO also sets its sights on expanding its tokenisation programme and has ongoing discussions with insurance and real estate companies to further develop the industry. These tokenised assets allow broader investor access, bringing liquidity and fractional ownership into asset classes that were traditionally accessible only to high-net-worth individuals. “Our tokenisation platform is asset-class agnostic, designed to accommodate a range of underlying assets,” Joshi emphasised, describing EMURGO’s commitment to “building bridges between traditional finance and digital assets by making them more accessible and compliant”.

Asia leads regulatory landscape for digital innovation

Asia’s regulatory landscape, particularly in Singapore and Hong Kong, have set a benchmark for how other regions might approach digital asset regulation. Singapore’s proactive stance, demonstrated by initiatives like Project Guardian and the Guardian Wholesale Network, has created an environment where innovation can thrive within a structured framework. Joshi highlighted the contrast between Asia’s approach and the more fragmented regulatory environments elsewhere, praising Singapore for fostering a space that “encourages blockchain as a technology stack rather than a speculative instrument”.

He noted that Singapore’s regulatory clarity and distinction between retail and institutional digital asset access reflect a commitment to innovation while protecting investors. Hong Kong, on the other hand, offers a more liberal policy, allowing retail investors access to digital assets. “Each region has tailored its approach to match its economic goals and risk tolerances,” Joshi observed. He suggested that Singapore’s model, which balances innovation with responsibility, could serve as a roadmap for jurisdictions aiming to manage the risks and rewards of digital finance.

EMURGO is actively collaborating with policymakers, drawing on the expertise of the Cardano Foundation to educate regulatory bodies and align with compliance standards worldwide. “Our goal is not just to advance technology but to foster understanding and trust within regulatory frameworks,” Joshi remarks, reflecting EMURGO’s commitment to supporting a sustainable digital asset industry that meets both local and global regulatory expectations.

Technological innovations and interoperability for a unified blockchain ecosystem

Interoperability between blockchain networks is a critical component of EMURGO’s strategy. Recent partnerships with Zilliqa, Axelar, and Bitcoin OS aim to create a seamless environment where assets can move across different chains, supporting a more cohesive blockchain ecosystem. “Interoperability is crucial,” Joshi emphasised, “because institutions need solutions that integrate across platforms, rather than isolated systems.” These collaborations allow users to access diverse blockchain networks without compromising efficiency or security.

The Cardano-Bitcoin OS partnership, for example, enables smart contract functionality on Bitcoin’s UTXO model, opening up Bitcoin’s extensive market cap for DeFi applications. “This integration lets Bitcoin move beyond a mere store of value,” Joshi noted, “enabling its use in a range of financial applications through smart contracts.” EMURGO’s focus on interoperability also extends to non-crypto industries, fostering an ecosystem where crypto-native and traditional financial institutions can collaborate and benefit from blockchain’s innovations.

Education and talent development in blockchain

EMURGO’s education initiatives aim to close the knowledge gap in blockchain, especially for non-technical professionals. Through partnerships with educational institutions and organisations like Roster, EMURGO is helping demystify blockchain for broader audiences. Joshi notes that while technical skills are foundational, business professionals must also understand blockchain’s potential applications to harness its benefits fully. “It’s about building a bridge between technology and business, especially for non-technical audiences,” he explained.

These efforts include educational programmes that target developers, business leaders, and students, expanding Cardano’s ecosystem and fostering a new generation of blockchain-literate professionals. From universities in Asia to online courses, EMURGO’s education programs aim to foster a talent pipeline that will support the future growth of digital assets and DeFi.

Shaping a sustainable future for digital assets

As digital assets continue to solidify their place in mainstream finance, EMURGO is positioning itself as a driver for institutional adoption, asset tokenisation, and regulatory collaboration. Joshi stressed that trust and stability are paramount as institutions integrate blockchain into their operations. “Our focus is on providing solutions that not only meet institutional standards but also align with regulatory frameworks globally,” he stated, reinforcing EMURGO’s dedication to responsible growth in the digital asset sector.

Looking forward, EMURGO’s goals include enhancing Cardano’s ecosystem, expanding tokenisation partnerships, and working with regulators to ensure a sustainable future for digital finance. “The future of digital assets is about bridging innovation with institutional needs,” Joshi concluded, “and EMURGO is committed to leading this transformation by creating solutions that foster trust, transparency, and long-term growth in the digital asset space.”