Citi and DTCC Say Tokenized Collateral Works and Now Regulators Must Keep Pace

Why It Matters

The proof‑of‑concept shows tokenized collateral can dramatically speed cross‑border settlement and unlock new liquidity, but regulatory misalignment will curb its transformative impact on the global financial system.

Summary

Citi’s Token Services platform is already live in the United States, United Kingdom, Hong Kong and Singapore, moving billions of dollars in real‑client cash transactions, while DTCC’s recent “Great Collateral Experiment” proved tokenized treasuries, equities and money‑market funds can serve as collateral across time zones. Executives at SmartCon said the technology is ready and interoperable, but disparate legal frameworks in each jurisdiction are slowing broader rollout. They warned that without harmonised standards, the market risks fragmentation, compliance mismatches and security gaps. The panel called for coordinated regulatory action, citing Switzerland’s model as a benchmark.