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

Executives from Citi, DTCC, and Taurus have reported that tokenized collateral is effectively facilitating cross-asset transactions. However, they emphasize that regulatory gaps are the primary challenge to widespread adoption. At the SmartCon conference in New York, Citi's Ryan Rugg highlighted that the bank's live tokenized cash system is operational in several key markets, moving billions in client transactions. Despite technology readiness, regulatory approval in various jurisdictions poses a hurdle for broader scaling. DTCC's Nadine Chakar noted that interoperability remains an issue due to varying systems across institutions. Taurus co-founder Lamine Brahimi urged U.S. institutions to adopt legal and technological standards similar to those in Switzerland to mitigate risks of fragmentation and compliance mismatches. The panelists concluded that although advancements are underway, regulatory alignment is crucial for the effective global use of tokenized assets.

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