October 12th 2026, 2:46 PM
Tokenization's Regulatory Test: Reliable Settlement and Ownership for Institutional Adoption
Key Summary
Tokenized assets need reliable settlement and ownership rights to win over institutions, according to Brickken CEO Edwin Mata. Regulators are examining whether tokenized assets can function as collateral, settle reliably, and retain their legal protections when markets turn volatile.
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Key Challenges for Tokenization
Tokenized assets face several challenges, including reliable settlement and ownership rights, practical collateral use, and ensuring tokenized assets can move across platforms and financial systems without weakening legal protections or restricting liquidity.Regulatory Focus on Tokenization
Regulators are turning their attention to what happens after an asset is issued on-chain. The European Securities and Markets Authority is consulting on whether tokenized assets can qualify as collateral in the region's clearing infrastructure.Institutional Adoption
Institutional adoption will depend on whether tokenized assets can be managed consistently throughout their lifecycle, with enforceable ownership, reliable settlement, sufficient liquidity, and operational resilience. The International Monetary Fund has separately examined how tokenization and connected digital infrastructure could affect financial stability.Future Directions
Over the next twelve months, institutional adoption will increasingly depend on how effectively tokenized assets can be held, transferred, and settled across different financial systems. Issuers will need to ensure tokenized assets can move across platforms and financial systems without weakening legal protections or restricting liquidity.#Tokenization#FinancialInstitutions#RegulatoryClearance#EU#Singapore