Global financial powerhouses confirm the readiness of asset tokenization technology for mainstream use, but warn that a fragmented and slow-moving regulatory environment is stalling its widespread adoption.
Executives from Citi, DTCC, and Taurus expressed consensus that the underlying technology for moving tokenized assets is mature. However, they highlighted the absence of uniform legal standards and interoperability protocols as significant barriers to expansion.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, stated that the bank’s tokenized cash system, Citi Token Services, is already active. This system operates in the United States, United Kingdom, Hong Kong, and Singapore.
The platform processes billions of dollars in real customer transactions. These include supply chain payments and capital market settlements. Rugg noted its continuous use, even outside traditional banking hours, on weekends, and holidays.
Despite this success, further expansion into more jurisdictions is restricted. Citi requires individual regulatory approvals for each country. Rugg emphasized the goal of a frictionless, multi-bank, multi-asset network, but conceded that “the rules still don’t exist.”
Nadine Chakar, Global Head of Digital Assets at DTCC, echoed this sentiment. She referenced “The Great Collateral Experiment,” a recent study demonstrating that tokenized US Treasury bonds, equities, and money market funds can serve as global collateral across time zones, even for crypto-linked transactions.
The experiment’s key finding was that technology is no longer the obstacle. Instead, a lack of market trust and a consistent legal framework are the primary challenges. Chakar remarked that the term “interoperability” is used too loosely, noting it does not yet function in practice.
Many institutions have developed proprietary tokenization systems. These often feature differing legal structures and smart contract designs. DTCC is collaborating with global clearing houses and networks like SWIFT to establish common standards, focusing on compatible language and protocols rather than shared technology.
Lamine Brahimi, co-founder of Taurus, urged U.S. institutions to emulate Switzerland. Switzerland has established national legal and technological standards for tokenized assets.
He warned that without international coordination, banks and companies risk fragmented systems, security vulnerabilities, and high compliance costs. Brahimi stressed that converging norms are crucial to prevent each entity from “reinventing its own tokenization infrastructure.”
The panel concurred that progress will unfold in stages. Digital wallet infrastructure could initially complement traditional bank account systems. Eventually, these wallets might evolve into the standard for real-time movement of money and assets.
The executives uniformly agreed that technological advancement is outpacing regulatory development. Chakar concluded that digital assets inherently operate 24/7 and globally. However, existing laws are local, creating a challenge when a token issued in one jurisdiction can instantly move to any other.
The discussion took place during a “CoinDesk Live” panel at the Chainlink SmartCon 2025 conference in New York. Leaders from the three financial institutions acknowledged that while tokenization is a technical reality, it operates within a fragmented legal landscape.