The world’s largest market infrastructure operators warn that tokenized securities will be difficult to scale unless the industry agrees on how blockchains and traditional financial systems connect.
In a joint white paper, the Depository Trust and Clearing Corporation (DTCC), Euroclear and Clearstream, in collaboration with the Boston Consulting Group, argued that “interoperability is a prerequisite for the adoption of digital asset security (DAS) at scale.” Without this, they wrote, assets risk getting stuck in isolated networks, keeping “operational costs high” and liquidity becoming fragmented as trading volumes grow.
The group stopped short of endorsing a single technology. Instead, the problem was labeled as structural. Dozens of public and permissioned blockchains are now hosting pilots and live products. Each uses its own standards, smart contract logic and settlement design. That diversity, the paper says, makes integration more difficult and increases operational and regulatory risks.
The authors rejected the idea that a single dominant ledger would emerge. The business model, they said, is shifting to a “network of networks, with standards, gateways and regulated service providers” connecting digital and traditional systems. In that environment, assets must be able to move across platforms while maintaining what the paper calls “the integrity, ownership rights and life cycle of the asset, in full compliance with laws and regulations.”
They summarize the goal in a short sentence: “same asset, same rights, same outcome.”
The warning comes as tokenization is gaining traction in repo markets and pilot programs in the US and Europe. While on-chain impacts remain small compared to global equity and currency markets, the article notes that large-scale infrastructure is already in motion, including more than $300 billion in daily repo activity on major platforms.
Yet many workflows depend on older rails. Tokenized bonds can be traded on-chain, but cash is often settled via real-time gross settlement systems or bank payment networks. Custodians and central securities depositories still keep records. The article assumes that this coexistence will last for years.
The framework also extends beyond technical bridges. Interoperability, according to the authors, should include assets and liabilities, ownership recognition, lifecycle events, ledger finality and legal enforceability. Without coordination between these layers, cross-chain or cross-border transactions may require additional coordination steps that undermine the promised efficiency gains.
The group called on regulators and market participants to develop working groups focused on governance, standards and resilience. “Collective action today will shape the resilient markets of tomorrow,” the paper said.
That push comes as major Wall Street firms argue that tokenization could reshape financial markets by enabling 24/7 trading, faster settlement and more efficient use of collateral. Executives at major banks and asset managers have said that blockchain-based rails could ultimately reduce back-office costs and free up capital tied up in multi-day settlement cycles. Some have described tokenized assets as a path to more integrated global markets, where cash and securities move in near real time.
The newspaper does not dispute that view. Instead, it suggests that achieving it depends less on launching new chains and more on aligning the rules that govern them.
Credit : cryptonews.net
