Tokenized collateral and settlement infrastructure

24/7 markets need tokenized collateral and cash, not just longer trading hours

What happened

  • Specific facts/numbers: The article says a panel at last week’s Wyoming SALT conference agreed round-the-clock trading is coming, but argued the bigger constraint is moving collateral and settlement cash at the same speed, including on weekends.
  • Institutions involved: Named participants include Tradeweb, Broadridge, DTCC, JSCC, Mizuho, MUFG, Customers Bank, The Clearing House and the Canton Network.
  • Regulatory/technical context: The story frames 24/7 trading as an infrastructure problem: tokenized collateral, tokenized deposits or other digital cash rails, and interoperable post-trade plumbing are needed so margin, settlement and liquidity management can operate continuously rather than reverting to next-business-day processes.
  • What to watch next: Watch for production rollouts of tokenized collateral and cash-settlement infrastructure by the named market utilities and banks; beyond that, no specific next milestone was identified in the text reviewed.

Why it matters

Extending trading hours without always-on collateral and cash movement could leave firms with higher settlement friction, liquidity risk and operational bottlenecks.

HKMA Relevance

Indirect: Hong Kong’s push into tokenization and regulated digital money makes this market-infrastructure debate relevant to how cross-border collateral and settlement models may evolve in Asia.

Story details