The U.S. Securities and Exchange Commission (SEC) is weighing in on a newly emerging asset class known as tokenized securities.

The move follows joint guidance from the SEC’s Division of Investment Management, Division of Corporation Finance, and Division of Trading and Markets.

US SEC Says Tokenized Securities Fall Under Its Umbrella

Classification of Two Major Categories According to the US SEC, tok The SEC stated that tokenized assets will fall under its regulatory oversight and will be subject to similar disclosure, registration, and compliance requirements.

In its statement on tokenized securities released on Jan. 28, the SEC said:

“A tokenized security is a financial instrument enumerated in the definition of ‘security’ under the federal securities laws that is formatted as or represented by a crypto asset, where the record of ownership is maintained in whole or in part on or through one or more crypto networks. ”

Big market platforms are already moving ahead with adopting tokenized assets. A growing number of exchanges, including the New York Stock Exchange (NYSE), are rolling out platforms to support tokenized equities.

Classification of Two Major Categories

According to the US SEC, tokenized securities usually fall into two categories. One is the issuer-sponsored tokenized securities, and the second is the third-party sponsored tokenized securities.

In issuer-sponsored models, the issuing company integrates blockchain technology directly into its ownership records. This allows on-chain transfers to represent actual transfers of the underlying security.

For third-party sponsored structures, the agency said a separate entity holds the underlying security in custody and issues a tokenized equivalent.

The SEC said that this is similar to traditional custodial arrangements, which means that the existing securities laws would continue to apply.

The agency also identified a separate third-party “synthetic” structure in which an issuer tokenizes a security issued by another party.

It helps to provide economic exposure to the underlying asset without granting associated rights such as voting.

The regulator said these instruments are classified as “linked securities.” This category basically includes certain structured notes and equity-linked products.

Securitize welcomed the SEC’s guidance, saying clear frameworks are essential for responsibly scaling tokenized securities.

Robinhood noted that wider adoption of tokenized stocks could help reduce the risk of market disruptions like those seen during the GameStop trading halt.

London Stock Exchange Group (LSEG) has announced plans to build an on-chain settlement capability, to be known as the LSEG digital securities depository (DSD).

The proposed DSD will serve as a market infrastructure solution for institutional participants. It is intended to support interoperability between traditional and digital markets, connecting existing settlement systems with emerging digital infrastructures. According to LSEG, the platform will support multiple blockchain networks and allow interaction between conventional post-trade processes and tokenised environments.
The first phase of delivery is targeted for 2026, subject to regulatory approval.

Daniel Maguire, group head of markets, LSEG: “We look forward to welcoming new strategic partners as we build LSEG Digital Market Infrastructure – a seamless ecosystem in which participants can move effortlessly between digital and traditional markets, connected across time zones and choice of payment options.”
The development builds on LSEG’s existing distributed ledger-based digital markets infrastructure (DMI), powered by Microsoft Azure. The DMI platform has been used to facilitate the tokenisation and distribution of private funds. The new DSD capability is expected to support on-chain settlement across a broader range of asset classes, including fixed income, equities and private markets. LSEG said the initiative is intended to enhance collateral management processes and improve access to liquidity.

Ryan Hayward, Head of Digital Assets, Barclays, said: “LSEG’s Digital Securities Depository is a positive step in the development and adoption of digital assets across UK markets. Barclays will continue to work with the UK government, LSEG and other providers on exploring a range of digital assets, as well as developing our own use cases.”

The group has previously indicated that tokenisation could play a significant role in the future of capital markets, particularly in the issuance and trading of bonds. The DSD forms part of that broader strategy to integrate digital asset infrastructure with established exchange and post-trade environments.

As part of the design and implementation process, LSEG plans to establish a strategic partner group. The objective is to incorporate market feedback into the build and to support issuance, settlement and trading across both digitally native securities and digital representations of traditional instruments. Angus Fletcher, global head of digital solutions, State Street, said: “As tokenisation continues to mature, interoperability between traditional and digital market infrastructure will be critical.” Fletcher added: “We are pleased to engage with LSEG as it develops the Digital Securities Depository, and we look forward to collaborating to assess models that support institutional adoption while meeting the operational and regulatory expectations of our clients.” Participants in the programme are expected to be announced in due course.

The Securities and Futures Commission (SFC) has issued new guidance to extend virtual asset (VA) services to margin financing for licensed brokers providing VA dealing services (VA brokers), according to a statement by the Hong Kong financial regulator.

In addition, it set out a framework to guide virtual asset trading platforms (VATPs) in developing proposals for VA-related leveraged products intended for professional investors.

As part of its latest measures to expand product and service diversity under the ASPIRe Roadmap, the SFC is allowing VA brokers to offer VA financing to their securities margin clients, subject to sufficient collateral and robust investor safeguards. This would enable margin clients with strong credit profiles and collateral to participate more actively in VA trading, thereby enhancing Hong Kong’s market liquidity in a riskcontrolled manner.

For licensed VATPs, the SFC has set out, for the first time, a high-level framework to guide them in developing perpetual contracts, which are leveraged instruments, for offering exclusively to professional investors.

This aims to support their risk management strategies and also deepen liquidity in the underlying spot market.

To further drive VA trading activity in Hong Kong, the SFC allows affiliates of licensed VATPs to act as market makers on their platforms, provided that strong safeguards are in place to mitigate conflicts of interest. The participation of these affiliates should provide licensed VATPs with an additional liquidity option.

“Our structured development approach based on the ASPIRe Roadmap is essential to scaling our digital asset market,” said Dr Eric Yip, the SFC’s executive director of intermediaries. “These targeted initiatives to enhance liquidity showcase the SFC’s unswerving commitment to developing Hong Kong’s digital asset market in a sustainable and collaborative manner.”

Hong Kong will establish a new digital asset platform this year for the issuance and settlement of tokenized bonds, with plans to eventually connect it to other tokenization platforms across the region. Financial Secretary Paul Chan announced the initiative in his 2026-27 budget speech on Wednesday, attributing the build to CMU OmniClear Holdings, a subsidiary of the Hong Kong Monetary Authority.

Chan said the platform will be gradually extended to cover other digitalassets beyond bonds, framing the effort as a step toward consolidating the city's position in digital asset infrastructure rather than keeping it confined to one-off pilot projects. The announcement integrates tokenized bond settlement directly into the HKMA's post-trade systems.

Hong Kong has already issued multiple rounds of government tokenized bonds. Chan confirmed the government issued its third batch in the fourth quarter of 2025, totaling 10 billion Hong Kong dollars ($1.28 billion), and said issuances will continue on a regular basis going forward.

On stablecoins, Chan said Hong Kong plans to issue its first batch of fiat-referenced stablecoin licenses in March, with initial approvals expected to be limited in number. He said licensed issuers will be supported in exploring use cases in a compliant and risk-controlled way.

HKMA Chief Executive Eddie Yue had previously indicated in early February that the regulator was preparing to grant its first stablecoin issuer licenses, noting that reviews are focused on use cases, risk management, Anti-Money Laundering controls, and asset backing. Chan's budget speech confirmed March as the target timeline.

Chan's speech also included plans to introduce legislation establishing licensing regimes for digital asset dealers and custodian service providers. Additionally, the Inland Revenue Ordinance will be amended to implement the OECD's CryptoAssetReportingFramework, aligning Hong Kong with international tax transparency standards.

The budget measures follow a Feb. 11 decision by the Securities and Futures Commission to allow licensed brokers to offer digital asset margin financing and a framework for crypto perpetual contracts limited to professional investors. Together, the measures reflect a consistent push to deepen regulated liquidity in Hong Kong's digital asset market.