Tokenization

“The latest developments in tokenization point to a more demanding phase for financial infrastructure. Regulators are examining whether tokenized assets can function as collateral, settle reliably and retain their legal protections when markets come under pressure.

“ESMA has opened a consultation on tokenized collateral in European clearing markets. EU finance ministers have advanced proposals to strengthen supervision and expand the DLT Pilot Regime. In Singapore, the central bank has outlined its approach to settling tokenized securities using digital money.

“The IMF has also examined the financial stability implications of tokenization, including the risks associated with increasingly connected financial…