Key Insights
- Tokenization is moving from concept to implementation as firms prepare for use cases focused on collateral mobility and liquidity optimization.
- Regulatory clarity is advancing, with recent guidance from the CFTC and global consultations shaping standards for tokenized assets.
- Technology convergence—DLT, AI and interoperability frameworks—is enabling real-time collateral management and operational resilience.
- Collaboration across jurisdictions and industry groups is essential to define standards and scale adoption.
Collateral management is at an inflection point. Market volatility, liquidity pressures and operational inefficiencies are all accelerating the shift toward tokenization. The question is no longer whether tokenization will reshape collateral management—it is how quickly firms can institutionalize these capabilities to meet the demands of modern markets.
These themes were explored during Nasdaq’s recent webinar “Tokenized Collateral:
How Collateral Management Fuels Institutionalization in Digital Assets Markets” featuring:
- Sophie Marnhier-Foy, VP and Head of Client Solutions Strategy, Nasdaq
- Matt Savarese, Global Head of Digital Asset Strategy, Nasdaq
- Amy Caruso, Head of Collateral Initiatives, ISDA
- Richard Glen, Solutions Architect, HQLAX
Watch a recording of the webinar here and read the takeaways below.
From Fragmentation to Institutionalization
Tokenization is quickly moving from pioneering technology to a structural response to market fragmentation across custodians, clearinghouses and participants. In collateral, the use cases are particularly evident. As such, firms are increasingly moving from “What if?” to “How?” and “When?”.
To drive progress, they’ll need to align technology, operations, strategy and market best practices to achieve production readiness.
"The industry is at a junction where the countdown to production-ready has started."
Tokenization introduces a shared infrastructure model, transforming collateral from a static buffer into a dynamic liquidity lever. Part of the institutional appeal of tokenization is not just the digital form of the real-world asset itself but the programmable nature of tokenization, which can accelerate mobility by leveraging smart contracts, standards and automation.
“[Programmability] allows all of your eligibility rules, your concentration limits, your reuse restriction and your marginal logic to be expressed directly into the code and the workflow itself.”
Takeaway #1: Technology as a Catalyst for Efficiency
Technology is the foundation for institutional-grade transformations like what tokenization presents. Panelists highlighted three technology pillars underpinning this shift: distributed ledger technology (DLT) for real-time settlement, artificial intelligence (AI) for automated predictive allocation and interoperability frameworks to connect traditional capital markets systems with blockchain rails.
Savarese noted that programmability will replace overnight batch processes with real-time orchestration—a fundamental shift in collateral management. Glen added that efficiency is not only about speed but also about reducing trapped collateral and optimizing funding costs in volatile markets.
“The adoption of tokenized collateral is largely being driven by the desire from market participants to improve three things: efficiency, mobility and flexibility.”
For institutions, these capabilities enable operational resilience and capital efficiency at scale. The convergence of DLT and AI creates a foundation for continuous operations, allowing firms to anticipate stress scenarios, automate margin calls and optimize allocation dynamically.
Takeaway #2: Proof Points Emerge for Institutional Readiness
Proof points are emerging. HQLAX’s intraday repo solution with Kinexys by J.P. Morgan and Ownera and Eurex Clearing’s DLT-based margin service were mentioned as being able to demonstrate tangible benefits such as faster settlement and reduced balance sheet consumption. Glen explained that intraday repo on DLT is more than a pilot—it is a blueprint for unlocking liquidity and lowering funding costs.
“Interoperability should be the word of the year, and maybe for a few years going forward.”
Interoperability and governance frameworks will be crucial to scaling production environments. For institutions, the transition from pilot to production requires integration across treasury, risk and compliance functions, supported by robust SLAs and contingency planning.
Takeaway #3: Collaboration Creates Strength
Institutionalization requires a market-wide effort. Panelists agreed that collaboration among custodians, central counterparty clearing houses (CCPs), technology providers and regulators is essential to define standards and ensure portability. One example is Nasdaq’s pilot with QCP, Primrose Capital Management and Digital Asset to Nasdaq Calypso connected with the Canton Network, which succeeded in facilitating end-to-end margin and collateral workflows that were orchestrated across blockchain and traditional rails.
"What partnerships accomplish is they unlock portability. Without high-quality partnerships you lose real-time margin and cross venue collateralization, which is where the real economic value is created."
Caruso reinforced that interoperability is the foundation for liquidity and risk management in a tokenized world. Partnerships unlock portability and economic value, ensuring tokenized assets can be recognized, valued and margined consistently across the institutional ecosystem. Industry initiatives such as the Common Domain Model (CDM) and tokenized money market fund working groups are critical enablers.
Takeaway #4: Regulatory Progress and Remaining Gaps
Institutional adoption depends on regulatory clarity. Caruso pointed to the recent guidance from the Commodity Futures Trading Commission (CFTC) on tokenized collateral, which sets standards for liquidity, enforceability and operational resilience. She emphasized that firms should expect incremental change rather than a single “big bang” moment.
Global initiatives—from UK consultations to EU frameworks—signal momentum, but interoperability and property rights still need harmonization. For institutions, legal certainty is essential to integrate tokenized assets into existing risk frameworks and governance models. Without enforceability and standardized treatment, tokenization remains a pilot exercise rather than a production reality.
What’s Needed to Drive Further Progress?
Institutionalization will require creating a trusted, interoperable framework that meets governance, resiliency and risk standards demanded by global institutions.
Webinar polling revealed that technology integration and regulatory uncertainty remain top barriers, which tracks with the discussion and points of emphasis raised by participants to drive progress, positive change and resilient infrastructure.
“It will not be a revolution—it will be an evolution.”
The roadmap to addressing these challenges is clear:
- Regulatory certainty: Enforceability of smart contracts and clarity on capital treatment
- Technology integration: Cloud-native platforms, blockchain connectivity and AI orchestration
- Interoperability: Standards for cross-chain and cross-jurisdictional operations
- Community engagement: Shared best practices through industry forums and working groups
For institutions, readiness is not just about technology deployment—it is about embedding tokenization into enterprise strategy and ensuring operational models can scale across jurisdictions.
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