From Paper to Code: Tokenization Pushes Deeper Into Market Infrastructure
Tokenization—the process of representing real-world assets as blockchain-based tokens—is moving from experiments at the edges of crypto toward the plumbing of traditional finance. Recent comments from market leaders, regulatory signals in the U.S., and new infrastructure work across networks point to a common theme: the technology is increasingly being treated as a modernization layer for how assets are issued, traded, and settled.
BlackRock CEO Larry Fink and Robert Goldstein have framed tokenization as a way to update parts of the financial system that remain “slow and costly,” while emphasizing that adoption depends on “proper regulatory guardrails.” Their view is that tokenization can broaden access to markets by improving the underlying infrastructure rather than merely creating new products.
That institutional framing is now being matched by activity at key market utilities. The Depository Trust & Clearing Corporation (DTCC) has outlined a tokenization initiative designed to help DTC Participants and their clients access a broader tokenization service, supported by DTCC’s ComposerX suite of platforms. Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, said the effort aims to tokenize securities with “uncompromising security,” “sound legal footing,” and “seamless interoperability,” while maintaining the resilience associated with traditional market infrastructure.
In the U.S., the SEC’s approval of a no-action letter related to DTC’s development of securities tokenization services arrived after DTC’s real-world asset (RWA) tokenization plans were referenced in Nasdaq’s own application for a no-action letter, which relies on DTC’s post-trade infrastructure. The sequence underscores how tokenization discussions are increasingly centered on settlement and post-trade processes—not only on issuance.
Regulators are also publicly discussing the scale of potential change. In an interview on Fox Business’s “Mornings with Maria” on December 4, SEC Chairman Paul Atkins shared a vision that “the entire US financial market could migrate on-chain.” The comment adds to a growing policy conversation around what it would take for tokenized assets to operate within existing legal and market frameworks.
Industry participants argue that the benefits are practical: near-instant settlement, 24/7 operations, programmatic ownership, transparency, auditability, and improved collateral efficiency. Matt Cipolaro noted that even if tokenized assets still rely on traditional financial structures, these operational improvements are a key reason companies are pursuing blockchain-based workflows. He also said broader access may follow if regulations become more open.
Examples of onchain finance are already extending into familiar instruments. Commercial paper—short-term corporate debt typically issued through legacy systems—has been structured onchain and settled using USDC, Circle’s dollar-pegged stablecoin. In that instance, J.P. Morgan created the onchain token representing the debt and handled the process, illustrating how tokenization can map conventional securities into digital settlement rails.
Outside the U.S., tokenization efforts are also being positioned as products for everyday investing workflows. In Thailand, XSpring Digital described a framework that lets investors buy and sell throughout a project’s lifetime through its app, and pointed to potential future uses such as using tokenized assets as collateral through partnerships within XSpring Group.
While much of the conversation focuses on institutions and regulation, product design remains a key constraint. Ledger Academy has emphasized that for tokenization to reach mass adoption, user experience and security will be decisive, alongside the liquidity improvements tokenization is often expected to enable.
At the protocol level, some networks are preparing for this shift with less visible, infrastructure-focused work. One recent release described changes that did not add new user-facing features, but instead focused on fixing subtle ledger inconsistencies, tightening API behavior, and restructuring code ahead of future protocol upgrades—the kind of groundwork needed for tokenization, DeFi integrations, and institutional-grade requirements.
- Why it matters: Tokenization is increasingly being treated as a market infrastructure upgrade, not just a crypto-native product category.
- What’s changing: Clearing and settlement utilities like DTCC are building tokenization services designed to integrate with existing post-trade systems.
- What remains critical: Regulatory clarity, interoperable standards, and strong security and user experience are emerging as central prerequisites.
The broader context is that tokenization is no longer being discussed only as a new way to “wrap” assets. Instead, it is being positioned as a way to move value more efficiently—like digitizing the transfer of instruments that have historically depended on paper-heavy, intermediated processes. Whether that promise translates into mainstream availability will depend on how effectively the industry aligns technical systems, legal structures, and user-facing design.