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

Citi, DTCC, and Taurus executives at SmartCon in New York emphasized that while their technology for tokenized cash and collateral is ready and operational across multiple jurisdictions, regulatory gaps remain a significant barrier to adopting it on a global scale. Citi's platform is already facilitating billions in client transactions from various sectors, including supply chain payments. However, regulatory approval in each jurisdiction is necessary for further expansion, highlighting the need for harmonized legal standards. DTCC’s experiments showed success in cross-time-zone operations using tokenized assets, but interoperability issues persist due to different firms' unique systems. To avoid fragmentation, security risks, and compliance challenges, global cooperation on standards is necessary. The panelists believe that wallet-based systems may eventually complement existing account-based models, but regulatory alignment is crucial for progressing further.

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