Just-in-time account funding may be right around the corner as tokenization provides real-time capabilities.

Banks, broker-dealers, and clearing agencies could soon reduce capital buffers as Depository Trust & Clearing Corporation (DTCC) moves closer to operationalizing tokenization through its subsidiary, Depository Trust Company (DTC).

The DTC—which provides book-entry custody for more than $114 trillion in assets, such as municipal bonds, corporate bonds, corporate stocks, and money market instruments from the U.S. and more than 131 other countries and territories—expects to launch a limited first phase of its tokenization service in July. The full service is scheduled to roll out in October.

In December 2025, the U.S. Securities and Exchange Commission (SEC) granted the industry utility permission for a three-year pilot to process highly liquid assets, including components of the Russell 1000 Index, exchange-traded funds that track other major U.S. indices, and various Treasuries. The intent is to give tokenized securities the same entitlements, protections, and ownership rights as assets currently held in DTC custody.

“Our vision is coming to fruition,” said Frank La Salla, president and CEO of DTCC, in Monday’s announcement. “Tokenization has the potential to reshape market structure by improving liquidity, transparency and efficiency.”

Standards Aligned

Tokenization—which creates a digital representation of a tangible asset like real estate or municipal bonds—is no longer just a finance-sector buzzword. More companies are weaving tokens into their corporate finance strategies, using them in a wide array of instruments, including smart contracts, stablecoins and tokenized U.S. Treasury bills.

The DTCC developed the tokenization platform in collaboration with the DTCC Industry Working Group, which includes more than 50 custodians, asset managers, broker-dealers, and market infrastructure providers across traditional and decentralized finance. The group is focused on aligning standards and preparing market participants for new operational and settlement workflows.

Despite the infrastructure milestone, the near-term implications for corporate treasurers may be limited.

“I don’t see a material benefit yet for CFOs,” said David Easthope, senior analyst and head of fintech research at Coalition Greenwich. “The more immediate value proposition is coming from stablecoins, not tokenized securities.” He added that the benefits for issuers, and their representatives like CFOs and treasurers, “are much further out in the tech cycle that we are in.”

The Financial Conduct Authority (FCA) and the Bank of England have laid out their joint approach for the development of tokenisation in UK wholesale markets and have opened up the proposal for public consultation.

Under the shared vision, the FCA and central bank identified key areas where firms required greater clarity from feedback, including prudential treatment, tokenised collateral, settlement instruments, and have outlined their stance across these areas.

Tokenisation is the process of generating a digital representation of a real-world asset, such as a bond or unit of currency, on a digital ledger.

They have launched public consultation to gain industry perspectives where current frameworks and systems support or limit the secure use of this technology.

The consultation is intended to assist in informing the next steps of creating a blueprint for digital wholesale markets.

The Bank of England also released a consultation on extending Real-Time Gross Settlement and Clearing House Automated Payment System (CHAPS) settlement hours, setting out the path toward near 24/7 settlement.

The staged approach includes weekend and extended daily operating hours, and will support cross-border payments and new payment and settlement models as tokenisation develops.

The Prudential Regulation Authority (PRA) has published Dear CEO letters setting out updated guidance on the prudential treatment of tokenised asset exposures and on innovations in deposits, e-money, and stablecoins.

Simon Walls, executive director of markets, FCA, remarks: “Tokenisation has the potential to transform wholesale markets — reshaping how assets are issued, traded, and settled.

He continues: “Today we are setting out the principles of a shared long-term vision to give industry the clarity it needs to engage, invest, and innovate with confidence. UK markets have always embraced new technology, and that will be central to ensuring the UK remains at the forefront of global wholesale markets."

Sarah Breeden, deputy governor for financial stability, Bank of England, adds: “The Bank and FCA have done a huge amount to enable the responsible adoption of tokenisation in retail and wholesale finance in the UK, working with the government and the industry.

“The task now is for public and private sectors together to build on these strong foundations, moving from pilots to production to support financial stability and sustainable growth.”

The US Securities and Exchange Commission (SEC) has elevated digital assets to a strategic priority, calling for regulatory clarity around blockchain technology, tokenization and crypto market infrastructure through 2030.

The shift was outlined in the agency’s draft Strategic Plan for fiscal years 2026–2030, published Tuesday. Alongside broader goals focused on capital formation, investor protection and agency modernization, the SEC dedicated an entire objective to digital assets and distributed ledger technology.

The agency said it aims to “provide a firm regulatory foundation for digital assets and distributed ledger technologies through a rational, coherent, and principled approach,” adding:

“Blockchain and crypto asset technologies have the potential to revolutionize America’s financial infrastructure.”

The strategic plan acknowledges that the growth of digital assets has outpaced existing regulations and calls for greater legal certainty for market participants. It also highlights tokenized offerings and onchain financial infrastructure as areas where the SEC intends to support compliant capital formation.

The document further references custody, trading and staking services, saying they should be able to operate under appropriate oversight without duplicative or conflicting regulatory requirements.

SEC reiterates the need for a clearer division of oversight with CFTC

Another key priority outlined in the draft plan is clarifying the division of responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC), a longstanding issue in US digital asset regulation.

As part of its push for a more coherent regulatory framework, the SEC said establishing clear rules for digital assets “also involves clarifying jurisdictional questions between the SEC and Commodity Futures Trading Commission.”

The agencies have already taken steps toward closer coordination. In March, the SEC and CFTC signed a memorandum of understanding to strengthen cooperation and information sharing as emerging technologies continue to reshape financial markets.

Jurisdictional boundaries between the SEC and CFTC are also a central issue in congressional deliberations over the Digital Asset Market Clarity Act, a market structure bill that seeks to establish a regulatory framework for digital assets.

As Cointelegraph previously reported, the legislation is expected to expand the CFTC’s authority over large segments of the digital asset market. The bill advanced out of the Senate Banking Committee last month and is expected to proceed to the Senate floor for a full vote.

After-market session from 4 p.m. to 8 p.m. begins September 14; 24-hour trading system under review

South Korean financial authorities have begun work to transform the domestic capital market into a real-time, 24/7 digital market by shortening stock settlement cycles, extending trading hours, and establishing infrastructure for security token offerings (STO).

The Financial Services Commission announced on the 23rd that it held a "Capital Market Infrastructure Innovation Review Meeting" with related institutions, including the Korea Exchange and Korea Securities Depository, to discuss advancements in securities trading and settlement systems and AI-driven digital transformation in the financial investment sector.

At the meeting, participants agreed to shorten the stock settlement cycle from the current T+2 (two business days after trading) to T+1 (next business day). Currently, funds from stock sales cannot be immediately recovered due to the two-day settlement period, and the change aims to inject liquidity tied up during this waiting period back into the market.

Trading hours will also be gradually extended. The Korea Exchange plans to introduce an after-market session from 4 p.m. to 8 p.m. starting September 14 and add a pre-market session by the end of next year. The commission further stated it would review the feasibility of establishing a 24-hour trading system.

Infrastructure for over-the-counter (OTC) clearing and settlement of unlisted stocks and fractional investment products will also be developed. Korea Securities Depository aims to complete the OTC settlement infrastructure for unlisted stocks and fractional investments by the end of this year and introduce a shortened settlement system within T+1 days.

The commission also plans to drive AI innovation in the capital market. It will build an AI-based market surveillance system to detect new types of abnormal and unfair trading patterns more effectively. Additionally, it will identify cases of AI utilization in the financial investment sector, such as AI investment agents, and push for institutional improvements.

Secretary-General Kwon Dae-young of the Financial Services Commission stated, "Today’s global capital markets are shifting their competitive axes, with infrastructure becoming a new source of competitiveness that changes investor experiences and drives market growth. Technological innovations like AI and blockchain are accelerating this change. We will pool public, private, and academic capabilities to seize opportunities from innovation while proactively responding to new risks and continuously strengthening investor protection systems."