Infrastructure finance and the new economy: A case for tokenising

Blockchain tokens can help the private sector access infrastructure projects which historically have been almost 90% funded only by governments.

The divisibility, blockchain technology, tradability and financial inclusion aspects will make digital tokens vast, global, inclusive and liquid, as opposed to unit trusts, or other such commingled funds, which are clunky, heavily intermediated and expensive.

A LARGE funding gap exists in the infrastructure space. Available funding covers only 10 per cent of sanctioned projects (about US$730 billion per annum), while 90 per cent of financing for Asian infrastructure projects comes from the public sector. To that end, private sector participation has