Reports: Deep Dive: Tokenomics; Open Banking & Finance: Global Trends from 95 Jurisdictions; Designing Payment Tokens;

This week we’re diving into tokenomics, the UK’s stablecoin ambitions, Ethereum’s evolving architecture, Southeast Asia’s digital payment surge, global open banking trends, and real-world tokenization

Insights & Reports:

1️⃣ Deep Dive: Tokenomics

2️⃣ Stablecoin: The UK Opportunity

3️⃣ From Wallet to Chain

4️⃣ Open Banking & Finance: Global Trends from 95 Jurisdictions

5️⃣ How Southeast Asia Buys and Pays 2025

6️⃣ Five Tokenization Use Cases

7️⃣ Designing Payment Tokens

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TL;DR:

Welcome to the latest edition of the Fintech Wrap Up Newsletter—this week we’re diving into tokenomics, the UK’s stablecoin ambitions, Ethereum’s evolving architecture, Southeast Asia’s digital payment surge, global open banking trends, and real-world tokenization use cases. All the full reports are available for download at the end of each section—feel free to explore them in more depth.

Tokenomics is no longer just a buzzword—it’s the make-or-break factor for crypto projects. Binance’s report reveals how projects are shifting from public sales to community-driven incentives like airdrops and lockdrops. Longer vesting periods and burn mechanisms are helping manage inflation and align incentives. But even the best token model can’t save a weak product—utility, trust, and sustainable demand remain critical. Download the full report from Binance to explore the nuances of successful token economies.

In the UK, Innovate Finance highlights a race against time. While lagging behind global peers, the UK still has a shot at stablecoin leadership—if it builds a forward-thinking regulatory regime. Stablecoins could power AI-driven finance, tokenized securities, and even support the government’s digital gilt ambitions. With London handling 40% of global FX turnover, capturing 10–20% of the future stablecoin market ($20–40B) isn’t far-fetched. The report is available for download for a deeper dive.

Nethermind and Deutsche Bank explore Ethereum’s evolution into an institutional-grade platform. Innovations like Proposer-Builder Separation, Single Slot Finality, and Trusted Execution Environments are transforming how Ethereum handles security, compliance, and real-time settlement. Layer 2 networks offer scalability with governance frameworks familiar to financial institutions. You can download their detailed whitepaper to dig into how Ethereum is laying the groundwork for mainstream adoption.

Southeast Asia is rewriting the playbook on ecommerce and payments. By 2028, 94% of online payments will be digital, with mobile wallets, BNPL, and real-time payments leading the way. Indonesia will emerge as the region’s largest ecommerce market, while Singapore and Vietnam push payment innovation forward. Cross-border ecommerce is booming, but it brings complexity. Download the full report from IDC, 2C2P, and Antom to unpack SEA’s digital transformation in detail.

Open banking is going global, with 95 jurisdictions now charting their own paths. Regulation-led models dominate in Europe and the Middle East, while market-driven frameworks thrive in Africa and Asia-Pacific. Broader regulatory coverage enables richer data-sharing, paving the way toward full-scale open finance and cross-sector open data. The full report by the Cambridge Centre for Alternative Finance is available to download and explore.

Tokenization is also moving from theory to reality. Ripple’s report showcases high-impact use cases across bonds, real estate, collateral, treasury, and trade finance—unlocking liquidity, reducing friction, and cutting costs. Meanwhile, JPMorgan and MIT’s joint research proposes a new design standard for payment tokens with compliance, UX, and governance in mind. Both reports are downloadable and worth reviewing for anyone building in digital finance.

Until next time—stay curious, and keep building.

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Insights

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Reports

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Deep Dive: Tokenomics

Tokenomics is critical to the success of crypto projects, as it defines how tokens are issued, distributed, and utilized—directly influencing user behavior, market value, and long-term sustainability. A well-designed token economy can attract users, align incentives, and foster trust, while poor design can lead to inflation, speculation, or failure—even with a strong product.

👉 Key insights include:

🔹 Projects are shifting away from public token sales toward ecosystem incentives to reward early adopters and stimulate community engagement.

🔹 Longer vesting and lock-up periods help align long-term incentives and prevent early investor sell-offs, building market confidence.

🔹 Token emissions (new token issuance) must be carefully managed. Burn mechanisms, like in Ethereum (EIP-1559) and BNB (BEP-95), help counter inflation and improve scarcity.

🔹 Fully Diluted Valuation (FDV) can be misleading if there’s a large gap between it and the market cap, signaling future dilution risk.

🔹 Airdrops are evolving with anti-Sybil mechanisms (e.g., Hop Protocol, Optimism) and alternatives like lockdrops to promote genuine participation and deter manipulation.

🔹 Many protocols fail by underestimating token demand. Demand is driven by clear utility—governance rights, staking rewards, service access—not just speculation.

🔹 Transparent governance via DAOs is vital but must avoid centralization. Models like vote escrow (veTokenomics) reward long-term participation and voting commitment.

🔹 Utility tokens play diverse roles: enabling protocol access, payments, staking, or voting. Their success hinges on maintaining trust and delivering actual value.