LOS ANGELES, CA / ACCESS Newswire / February 19, 2026 / As digital assets proliferate and financial technology pushes toward complete virtualization, experienced financial technology leader Kotaro Shimogori advocates for a contrarian perspective: successful digital finance requires stronger connections to traditional value stores, not weaker ones.

"The gold standard is still the gold standard," Shimogori observes. "I think we're eventually going to go back to that because we've got to have some kind of a tangible asset to base everything on. All this stuff is so kind of up in the air, nebulous, and then it's really hard to really kind of have real value."

The Tangibility Gap in Digital Finance

The explosive growth of digital assets-from cryptocurrencies to NFTs to purely digital financial instruments-has created what Shimogori identifies as a fundamental disconnect from tangible value. While these instruments offer unprecedented flexibility and accessibility, they also create new forms of systemic risk through their detachment from physical assets.

"We have to figure out a way to bring back more of the traditional values to these instruments," he explains, highlighting the challenge of maintaining stability and trustworthiness while embracing digital innovation.

This perspective emerges from Shimogori's extensive experience with complex financial systems and his understanding of how trust formation works in financial relationships. His insight reflects a broader concern that purely digital assets may lack the stability necessary for long-term financial system health.

Stable Coins and the Asset Backing Challenge

Shimogori's analysis focuses particularly on stable coins - digital currencies designed to maintain value stability through asset backing. "Stable coins are kind of there, but everything has to be backed up by a certain amount of assets," he notes, identifying the core challenge in digital asset design.

Recent market events have validated this concern, as several major stable coin projects have faced questions about their asset backing and reserve management. The collapse of some stable coin projects demonstrated the risks that emerge when digital assets lose connection to tangible value stores.

Recent market events have demonstrated how inadequate asset backing can undermine even widely-used digital currencies.

This challenge extends beyond stable coins to the broader digital asset ecosystem. Any financial instrument that claims stability or value preservation must ultimately connect to tangible assets to maintain credibility during market stress.

The Evolution Toward Hybrid Systems

Rather than viewing digital and traditional assets as competing paradigms, Shimogori envisions hybrid systems that combine digital efficiency with traditional stability. This approach leverages technology to improve financial services while maintaining connection to proven value stores.

His experience with cross-border financial systems demonstrates how technological innovation can coexist with traditional financial frameworks. The key lies in using technology to enhance rather than replace fundamental value propositions.

"It could all change into becoming a blockchain transaction," he notes about stable coins, suggesting that the technology infrastructure can evolve while maintaining necessary asset backing requirements.

Practical Implementation Challenges

The challenge of connecting digital assets to traditional value stores involves more than theoretical design-it requires practical implementation that satisfies both technological capabilities and regulatory requirements.

Asset custody, verification, and audit processes become crucial when digital instruments claim backing by physical assets. These operational challenges require systematic approaches that combine technological innovation with established financial controls.

Shimogori's infrastructure-first philosophy applies directly to these challenges. Sustainable digital asset systems require robust operational foundations that can handle both the efficiency demands of digital systems and the verification requirements of traditional asset backing.

Regulatory Clarity and Classification

A recurring theme in Shimogori's analysis involves the importance of clear regulatory classification for digital assets. "Until they classify what it really is, whether it's an asset or an investment class, whatever. Until people start really agreeing on what that exactly is," he explains, highlighting how uncertainty undermines digital asset stability.

This classification challenge affects not just individual assets but entire market segments. Without clear regulatory frameworks, digital assets remain subject to sudden policy changes that can dramatically affect their value and usability.

His experience with compliance as a competitive advantage suggests that organizations succeeding in digital asset markets will be those that work within regulatory frameworks rather than trying to avoid them.

The Gold Standard Perspective

Shimogori's reference to the gold standard reflects deeper concerns about monetary policy and asset stability that extend beyond digital currencies to broader financial system design. "I think we're eventually going to go back to that," he suggests, advocating for stronger connections between financial instruments and tangible assets.

This perspective doesn't necessarily suggest literal return to gold backing for currencies, but rather emphasizes the importance of maintaining clear connections between financial instruments and real-world value stores.

The principle applies to digital asset design: successful digital financial instruments will be those that provide clear, verifiable connections to tangible assets rather than relying purely on market sentiment or technological novelty.

Risk Management in Digital Systems

The volatility and uncertainty that characterizes many digital asset markets creates challenges for risk management that traditional financial institutions understand well. Shimogori's perspective emphasizes building stability into digital systems rather than accepting volatility as inevitable.

"We've got to have some kind of a tangible asset to base everything on," he notes, identifying asset backing as a crucial risk management tool for digital financial systems.

This approach aligns with his broader philosophy of building resilient systems that can withstand market stress and regulatory changes while continuing to serve user needs effectively.

Integration Strategy for Traditional Institutions

For established financial institutions considering digital asset integration, Shimogori's perspective suggests focusing on hybrid approaches that leverage digital efficiency while maintaining traditional risk management practices.

Rather than wholesale adoption of purely digital systems, institutions can implement digital technologies that enhance existing services while preserving connections to traditional value stores and regulatory frameworks.

This gradual approach reduces implementation risk while enabling organizations to gain experience with digital asset technologies before committing to more extensive system changes.

Looking Forward: Balanced Innovation

Shimogori's vision for digital asset evolution emphasizes balance between innovation and stability. Future success will come from systems that harness digital technology's efficiency advantages while maintaining the trust and stability that traditional asset backing provides.

"We got to figure out a way to bring back more of the traditional values to these instruments," he concludes, suggesting that the most successful digital financial systems will be those that combine rather than replace traditional and digital approaches.

This balanced perspective offers guidance for both technology developers creating new digital assets and traditional institutions evaluating digital integration strategies.

As digital assets continue evolving, Shimogori's emphasis on tangible asset backing and traditional value stores provides an important perspective on sustainable development approaches. Success in digital finance may depend less on complete virtualization than on thoughtful integration of digital efficiency with traditional stability.

For leaders in financial services, this perspective suggests that the most valuable digital asset implementations will be those that enhance rather than replace traditional value propositions. By maintaining connections to tangible assets while leveraging digital technology's advantages, organizations can build systems that provide both innovation and stability.

The future of digital finance lies not in choosing between digital and traditional approaches, but in combining them thoughtfully to create systems that are both innovative and trustworthy.

CONTACT:

Andrew Mitchell
media@cambridgeglobal.com

SOURCE: Cambridge Global