What's new
Overview
This dossiers provides on overview of the direction of tokenization efforts including insights from major public-sector led project initiatives and jurisdictional pilots and sandboxes as well as the emerging regulatory framework for tokenization and key associated policy questions.
What's new
Reserve Bank of Australia and DFCRC release Project Acacia findings and outline program for wholesale tokenised markets
The Reserve Bank of Australia and the Digital Finance Cooperative Research Centre published a Project Acacia report on how digital money and settlement innovations could support wholesale tokenised asset markets, finding potential efficiency and resilience gains but also scaling challenges requiring further regulatory and industry work. The project, conducted with industry and supported by ASIC, APRA and the Australian Treasury, tested 20 use cases across multiple asset classes using various forms of digital settlement, including a pilot wholesale central bank digital currency, tokenised commercial bank deposits and stablecoins. The report outlines a multi‑stream work program, including enhanced industry‑regulator cooperation and a potential regulatory sandbox for digital market infrastructure.
Qatar Financial Centre signs Commercial Bank partnership to expand banking access for licensed firms and support tokenisation testing
The Qatar Financial Centre has signed a Memorandum of Understanding with Commercial Bank to facilitate access to customised banking products and immediate banking services for firms and employees licensed on its platform. The agreement also establishes a framework for collaboration in fintech and digital assets, including joint ecosystem initiatives and testing of tokenisation opportunities through the Qatar Financial Centre Digital Assets Lab.
Argentina Securities Commission holds market meetings on Big Bang package replacing prior approvals with automatic authorization
The Argentina Securities Commission reported that its board held two meetings with over 100 market participants, industry associations and major law firms to discuss the public consultation on its “Big Bang” regulatory package. The core proposal would shift the capital markets framework from prior approvals to automatic authorization, with limited exceptions, and includes measures to facilitate issuance of corporate bonds, shares, financial trusts and mutual funds, promote tokenization, broaden medium- and low-impact regimes, and expand the regulatory sandbox.
United States Federal Reserve Board Governor Cook outlines tokenization opportunities and warns of liquidity and interconnectedness risks
The Federal Reserve Board published a speech by Governor Lisa D. Cook noting that tokenization of financial assets could enhance collateral mobility, liquidity management, settlement efficiency and cross-border market access, but may pose new financial stability risks as it scales. She said U.S. tokenized assets have more than doubled over the past year to around USD 25 billion, led by government bond funds, and stressed that tokenization should complement traditional market infrastructure.
European Central Bank sets out September launch of Pontes tokenised central bank money settlement for DLT-based transactions
European Central Bank Executive Board member Piero Cipollone outlined the Eurosystem’s approach to tokenisation, confirming that tokenised central bank money settlement for distributed ledger technology-based transactions will be offered from September via the Pontes project. He noted that since March the Eurosystem has accepted marketable assets issued in central securities depositories using distributed ledger technology as eligible collateral and is considering extending eligibility to other distributed ledger technology-issued assets, and highlighted the Appia roadmap on architecture and standards to avoid market fragmentation and reliance on private settlement assets such as stablecoins.
Argentina Securities Commission launches consultation to broaden tokenization under automatic public offer regimes and extend sandbox to 31 December 2027
The Argentina Securities Commission has launched a public consultation on draft amendments to broaden the digital representation regime for publicly offered negotiable securities and extend the regulatory sandbox to 31 December 2027. The proposal would expand tokenization to securities issued under any automatic authorization regime, including low- and medium-impact regimes, and to all closed-end mutual funds eligible for automatic public offering authorization, subject in some cases to voluntary prospectus preparation and specific authorization.
Financial Conduct Authority sets out fund tokenisation guidance and optional Direct to Fund dealing model
The Financial Conduct Authority has published guidance on fund tokenisation, clarifying how asset managers can use distributed ledger technology within existing rules and introducing measures to improve fund dealing efficiency, including an optional Direct to Fund model for traditional and tokenised funds. Developed with industry input, the policy statement defines tokenisation and outlines potential future developments as part of the authority’s digital assets roadmap for asset management, and the authority will engage with industry on distributed ledger technology in UK wholesale markets.
Malaysia Securities Commission and Khazanah price Malaysia’s first tokenised sukuk at MYR100 million
The Malaysia Securities Commission, with Khazanah Nasional Berhad, has priced Malaysia’s first tokenised sukuk of MYR100 million under its market innovation pilot, using distributed ledger technology within existing regulatory frameworks and aligned with the Capital Market Masterplan 2026-2030. The one-year tranche under Khazanah’s Sukuk Danum Programme of up to MYR20.0 billion is structured on the Shariah principle of Wakalah bi al-Istithmar and involved CIMB Group, Maybank and institutional investors. The pilot aims to provide a template for future tokenised sukuk and guide further modernisation of Malaysia’s capital markets.
Hong Kong Securities and Futures Commission launches pilot framework for 24/7 secondary trading of tokenised authorised investment products on licensed virtual asset trading platforms
The Hong Kong Securities and Futures Commission has issued guidance establishing a regulatory framework to pilot secondary trading of tokenised SFC-authorised investment products, initially focused on tokenised open-ended funds on SFC-licensed virtual asset trading platforms. It aims to broaden regulated secondary-market access for retail investors, support potential round-the-clock trading and the use of regulated stablecoins, and incorporates requirements on fair pricing, orderly trading, liquidity provision and disclosure. The SFC highlighted rapid market growth, with 13 tokenised products publicly offered and tokenised assets under management rising about seven-fold over the past year to HKD 10.7 billion as of March 2026.
National Bank of Georgia invites supervised brokerages to join regulatory sandbox for tokenized bonds
The National Bank of Georgia has opened its regulatory sandbox on tokenized bonds to supervised brokerage companies to test new models for bond issuance, recording, and trading using digital tokens and to inform future regulation. Tokenized bonds are positioned as programmable digital equivalents of traditional bonds intended to improve issuance efficiency, automate servicing, increase liquidity, reduce transaction costs, and broaden access for corporate issuers and small investors, without implying any licensing or regulatory pre-commitment.
European Central Bank outlines September start of Pontes tokenised central bank money settlement and Appia roadmap for tokenised markets
The European Central Bank published a keynote speech by Executive Board member Piero Cipollone on how tokenisation and distributed ledger technology could reshape financial market infrastructure and how the Eurosystem will support this transition. The speech confirmed that under the Pontes project the Eurosystem will provide tokenised central bank money settlement for distributed ledger technology-based transactions from September 2026 and has begun accepting certain distributed ledger technology-issued securities as collateral in Eurosystem credit operations. Cipollone also highlighted the Appia roadmap to develop by 2028 a blueprint for a European tokenised financial ecosystem and indicated further work on expanding collateral eligibility.
European Central Bank Macroprudential Bulletin sets out policy priorities for safe scaling of tokenisation and distributed ledger technology
The European Central Bank’s 33rd Macroprudential Bulletin reviews the shift of tokenisation and distributed ledger technology from concept to early-scale deployment, highlighting potential benefits for deeper, more efficient EU capital markets, conditional on aligned policy, settlement in central bank money, and robust regulatory and macroprudential frameworks. It examines settlement models, traded asset types, the impact of MiCA‑compliant stablecoins on sovereign bond markets and banks, and notes tokenised assets on public blockchains reached a global market capitalisation of USD 45 billion by February 2026. The bulletin also details Eurosystem work on wholesale central bank money settlement, including the Pontes and Appia initiatives and potential eligibility of DLT‑based assets as Eurosystem collateral.
European Central Bank research finds tokenised bonds have lower yield spreads and narrower bid-ask spreads than comparable conventional bonds
The European Central Bank published research finding that tokenised bonds using distributed ledger technology have lower borrowing costs at issuance and tighter bid-ask spreads than comparable conventional bonds, although operational cost savings are not yet evident. The article links tokenisation’s future impact to infrastructure choices and market scalability, and highlights ongoing Eurosystem work on DLT-based collateral, market infrastructure modernisation, and reviewing the EU DLT Pilot Regime within the Market Integration and Supervision package.
Bermuda Monetary Authority launches consultation on asset tokenisation framework and dual-licensing exemptions
The Bermuda Monetary Authority has issued a consultation paper proposing regulatory clarifications and additional requirements for asset tokenisation within existing financial services regimes, focusing on the “asset leg” and distinguishing between “digital twins” and “native tokens” on a substance-over-form basis. The paper proposes a harmonised definition of “tokenised investments” across multiple Acts, mirrored exemptions to avoid dual licensing, extensions of existing digital asset cyber and custody codes, amendments to enable tokenised fund registers and disclosures, and role-based requirements for Primary Tokenisers, Secondary Offerors and Custodians, including 1:1 reserve expectations, proof-of-reserves, smart contract controls and baseline cyber governance.
International Monetary Fund outlines five-pillar policy roadmap for tokenized finance
The International Monetary Fund has outlined a five-pillar policy roadmap for tokenized finance focused on safe settlement assets, consistent regulation, legal certainty, interoperability and updated crisis management. The analysis warns that continuous settlement and automation could amplify liquidity stress, concentration and cross-border contagion. It calls for stronger oversight of code and infrastructure, real-time supervision and central bank tools suited to 24/7 tokenized markets.
Central Bank of Ireland opens discussion on DLT and tokenisation and sets out priorities for Europe’s digital asset and payments infrastructure
The Central Bank of Ireland has published a Governor’s blog and discussion paper on distributed ledger technology and tokenisation, framing them within efforts to modernise Europe’s payment and settlement infrastructure while keeping central bank money as the settlement anchor as activity moves on-chain. The paper sets out potential benefits and use cases across markets, funds and payments, key enablers such as legal clarity, interoperability, resilience, digital identity and governance, and risks including new concentrations of control, smart-contract and bridge vulnerabilities, liquidity and leverage amplification, and supervisory challenges. It also notes the rapid growth of tokenised money market funds and links payments initiatives to Eurosystem work on a digital euro and wholesale DLT settlement, including the Pontes and Appia tracks and a planned Pontes pilot by end-Q3 2026.
Thailand Securities and Exchange Commission amends mutual fund rules to enable faster sale and redemption of tokenized fund units
The Thailand Securities and Exchange Commission has amended mutual fund regulations to permit the sale and redemption of mutual fund units issued in tokenized form, with the aim of enabling faster transaction processing and clarifying related rules. The revised requirements, now in force, provide operational guidance for mutual funds issuing tokenized units following broad support in a prior public hearing.
European Central Bank study estimates tokenised money market funds at around EUR 7 billion and warns of amplified run and operational risks
The European Central Bank published analysis on tokenised money market funds (TMMFs), estimating the global market at around EUR 7 billion and noting most structures remain partly off-chain, creating a mismatch between token and underlying fund liquidity. Tokenisation can enhance settlement speed and availability but may amplify liquidity and run risks through additional operational, cyber and market-structure vulnerabilities, including reliance on stablecoins and dual on-chain/off-chain infrastructures. The ECB identifies supervisory priorities to apply existing money market fund rules consistently to TMMFs and improve data and reporting on their size, use cases and interlinkages with traditional and digital asset markets.
European Central Bank outlines Eurosystem tokenisation response with Pontes central bank money settlement planned for Q3 2026 and Appia blueprint by 2028
The European Central Bank published a Macroprudential Bulletin article on the rapid growth of tokenised assets and the Eurosystem’s policy response to support an integrated European digital capital market while safeguarding financial stability. It outlines plans to enable settlement of distributed ledger technology asset transactions in central bank money via the Pontes project by the third quarter of 2026 and to develop an integrated digital financial ecosystem blueprint under Appia by 2028, addressing regulatory frictions and lessons from the European Union DLT Pilot Regime. The article also notes the Eurosystem’s March 2026 decision to accept certain DLT-based collateral for credit operations and ongoing work on potential eligibility of other DLT-issued assets.
Canadian Securities Administrators launches Project Tokenization and invites stakeholders to Calgary and Toronto workshops
The Canadian Securities Administrators has launched Project Tokenization under its CSA Collaboratory to examine tokenized financial products in Canada’s capital markets and their interaction with Canadian securities laws, aiming to support coordinated regulatory responses. The initial phase will assess opportunities and risks through stakeholder engagement, issue mapping, and targeted research, with potential later phases including a discussion paper and live testing of tokenized instruments and related infrastructure.
European Central Bank publishes comprehensive payments strategy covering tokenised settlement assets, T2 enhancements and the digital euro
The European Central Bank has outlined a Eurosystem payments strategy combining upgrades to existing infrastructures with new solutions across wholesale, corporate, retail and cross-border payments, anchored in central bank money to strengthen European autonomy, innovation and the euro’s international role. Key elements include an integrated market for tokenised settlement assets with tokenised central bank money, continued investment in T2 and DLT-compatible money via Pontes and Appia, enhanced digital euro and EU-governed wallets, and cross-border initiatives using TIPS and BIS Project Nexus. Pontes is due by end-Q3 2026 and digital euro issuance readiness in 2029, subject to regulation.
Bermuda Monetary Authority outlines activity based regulatory framework and licensing exemptions for asset tokenisation
The Bermuda Monetary Authority has issued a stakeholder letter on feedback to its November 2025 asset tokenisation discussion paper and initial policy direction ahead of an April 2026 consultation. It proposes an activity-based, technology-neutral framework under the Digital Assets Business Act 2018, with a functional, role-based perimeter, stronger custody, governance and disclosure standards, extended AML/ATF guidance, and independent smart contract audit and operational resilience requirements. The Authority will also clarify the regulatory taxonomy via a new “tokenised investments” definition, harmonise the Investment Business Act 2003 and Digital Asset Issuance Act 2020 through integrated exemptions, and work with national stakeholders on legislative changes, including recognising distributed ledger technology-based registers.
Arab Monetary Fund convenes 32nd Arab Committee meeting on payment and settlement systems with focus on instant and cross-border payments
The Arab Monetary Fund opened the 32nd meeting of the Arab Committee on Payment and Settlement Systems, held virtually with Arab central banks and international institutions, to review developments in payment systems amid accelerating digitalisation. Participants discussed instant and cross-border payments, remittances, and regulatory and supervisory issues including Buy Now, Pay Later, cybersecurity, strong customer authentication, asset tokenization, digital asset-based infrastructures, and use of artificial intelligence in oversight.
World Federation of Exchanges announces 2026 priorities on tokenisation, CCP resilience and 24/7 trading
The World Federation of Exchanges (WFE) has outlined its 2026 focus areas for exchanges and central counterparties, emphasizing market structure, investor protection, and infrastructure resilience. Key initiatives include examining the evolving roles of exchanges and CCPs, tokenisation, crypto assets, and market design implications. The agenda also addresses investor protection, market transparency, clearing and settlement, and the operational impacts of extended trading hours.
U.S. House Financial Services Committee holds full committee hearing on asset tokenization’s regulatory implications for capital markets
The U.S. House Financial Services Committee held a hearing on asset tokenization's impact on capital markets, focusing on regulatory implications and balancing innovation with investor protection and market integrity. Chairman French Hill emphasized tokenization's potential benefits, like increased efficiency and transparency, while questioning current securities laws' adequacy. The hearing aimed to identify regulatory gaps and inefficiencies that could risk or hinder market integrity and capital formation.