Will capital markets convert to using blockchain-based systems? Will digital currencies replace conventional ones? These questions have been in the air for a long time, but the uncertainty is fading. Increasingly, it looks like the answer to both will be yes. Two experiments this week bring those prospects nearer. SG’s Forge subsidiary has begun a repo transaction on tokenised covered bonds, conducted wholly on the blockchain. And Euroclear and the Banque de France have been war-gaming a whole range of transaction types.Meanwhile, the meteoric growth in stablecoins means they are becoming some of the largest owners of short term securities, such as commercial paper and government bills. Fitch thinks they could overtake conventional money market funds in the CP market. Is this a good idea, given their unregulated nature and history of faux pas? Listen to our podcast for an update from the digital front line from Lewis McLellan, Bill Thornhill and Frank Jackman.