Without the ability to fluidly move trillions of dollars in collateral assets, tokenization has no real meaning.

What Is True Innovation

In early September, Nasdaq made headlines by applying to the SEC for rule changes that would allow trading of tokenized stocks and exchange-traded products on their platform. At first glance, this seems like the moment blockchain truly enters the US stock market. However, frankly, the core of this story lies elsewhere.

The digitization of securities was completed decades ago. Since the establishment of the Depository Trust Company (DTC) in 1973, electronic bookkeeping systems have replaced paper securities. The same process has been followed by CREST in London, Euroclear in Europe, and JASDEC in Japan. Today, securities are already born digital. Ownership is fully tracked, recorded, and settled within a centralized architecture.

So, what is the real meaning of tokenization? It is not merely a “ledger change,” but a fundamental shift in how assets move and how they can be reused efficiently. Can collateral assets move more liquidly, faster, and more efficiently between institutions?—that is the key.

What Will Happen in the $144 Trillion Market

Understanding scale is crucial. The global bond market balance in 2024 is $145.1 trillion. As of the end of September, government bond issuance alone was about $22.3 trillion. That’s eight times the total market capitalization of all cryptocurrencies. In such a massive market, “crypto enthusiast passion” alone will not change anything.

Treasuries, corporate bonds, repo transactions, margin solutions—these underpin short-term liquidity. What is needed here are “faster movement,” “reusable collateral assets,” and “capital efficiency.” These use cases naturally make traditional financial products prime candidates for tokenization.

Stablecoins are accelerating this change. Mainly backed by government bonds and cash equivalents generating yields, stablecoins already function as tools for banks to reduce settlement costs and speed up transfers. EY’s report predicts stablecoins could account for 5-10% of global payments, representing a value of $2.1 trillion to $4.2 trillion.

Furthermore, the CFTC (U.S. Commodity Futures Trading Commission) is considering recognizing stablecoins like USDC and Tether as collateral assets in the U.S. derivatives market. If approved, stablecoins will be positioned alongside government bonds and high-grade bonds as mainstream collateral assets, and the infrastructure could start moving at scale.

From Now to 2030: Two Phases

Over the next five years, it will become clear whether tokenized collateral assets are just a passing trend or a true game-changer.

Initial Phase until 2026: Banks and asset managers are eager to pilot tokenized bonds and stablecoins with limited workflows. Stablecoin settlement, especially in derivatives markets, will begin to complement traditional cash. Early adopters will capture slight capital inefficiencies, but tokenomics will still be limited to standardized, liquid products.

Full-scale Phase by 2030: The situation could change dramatically. Tokenized bonds, funds, and stablecoins will become mainstream collateral assets across institutions. Government bonds and corporate bonds will hold a significant share of liquidity and re-collateralization markets. Widespread adoption of stablecoins by banks will enable faster, cheaper, and more transparent settlement and collateral flows.

What will truly differentiate at that point? It will not be “companies mastering tokenization,” but rather “companies capable of integrating, reusing, and moving tokenized assets with stablecoins and traditional securities.” Infrastructure builders will be the winners.

Efficiency as an Operational Imperative

The reason for pursuing this technological obsession to the extent of academic curiosity is that this is not just innovation—it is an “operational necessity.”

Traders and market participants need to seamlessly move collateral assets between tokenized securities, bonds, and stablecoins to manage capital efficiently. As markets increasingly adopt digital collateral assets, true mastery lies in robust systems—risk management, funding, conversion, transfer, and internalization of these collateral assets.

Capital efficiency offers more than just operational ease. It provides financial freedom, protects companies from sudden market shifts, and grants flexibility in strategic decision-making. When resources are deployed optimally, companies can offer better pricing, achieve higher margins, strengthen their market position, and outperform less efficient competitors in capital deployment.

Beyond the Ledger

Nasdaq’s rule change is a notable step in the ongoing digital evolution of financial markets. But it is just the beginning. Securities have been digitized for decades, and tokenomics alone adds little innovation unless combined with systems that enable more efficient conversion, reuse, and movement of collateral assets.

The future of finance is not merely managing assets on a blockchain ledger. It is about making them interchangeable, interoperable, and strategically fluid across the entire financial system. This is very likely to become the next frontier of capital markets—a convergence of technology, risk management, and operational excellence.

Whether in crypto assets or not, the push toward powerful capital efficiency is at the heart of every serious financial enterprise. It fosters long-term sustainability, helps companies navigate market cycles, and solidifies true competitiveness.

The real significance of tokenomics lies in unlocking the liquidity, interoperability, and strategic utility of collateral assets that enable this efficiency. Early adopters who turn pilot programs into routine practices will be better prepared to navigate the expanding market of tokenized collateral assets over the next decade.

About the Author
Emily Sutherland is the Product Lead at Cor Prime, with over 10 years of experience in institutional investor product strategy and development. She has held senior roles at Galaxy Digital, Bridgewater Associates, and CAIS. Her current focus spans the entire spectrum of crypto credit and prime brokerage.