Tokenized securities, settlement infrastructure, and regulatory guidance

In 2026, the landscape of digital finance is experiencing unprecedented acceleration, driven by the rapid expansion of tokenized securities, cross-border settlement pilots, and evolving regulatory guidance. Industry leaders and regulators are actively shaping an interconnected ecosystem that promises faster, more efficient, and more transparent asset issuance and trading across borders.

Main Developments:

A key feature of this transformation is the proliferation of real-time settlement platforms such as xStocks by Deutsche Börse and INDX by Fiserv. These platforms exemplify the shift towards instantaneous, cross-border digital securities trading, enabling settlement in seconds rather than days, significantly reducing settlement risk and enhancing liquidity. For instance, Deutsche Börse’s xStocks on 360X facilitates continuous, real-time trading of tokenized securities across regions, marking a structural evolution in market infrastructure.

Simultaneously, CBDC-tokenized security interoperability is gaining ground. The Bank of England’s Synchronisation Lab has demonstrated interoperability between Central Bank Digital Currencies (CBDCs) and tokenized securities, paving the way for seamless cross-border settlement and multilateral monetary frameworks. This interoperability could transform global trade and settlement, reducing friction and costs associated with traditional cross-border transactions.

Regional Hubs and Regulatory Progress:

Regional financial centers are at the forefront of innovation:

• Hong Kong is positioning itself as a regional digital finance hub, with plans to launch a comprehensive digital bond platform linked to Singapore and China. The Hong Kong Monetary Authority (HKMA) is actively developing a digital asset platform to support issuance and settlement of tokenized bonds, aiming to foster regional cooperation and liquidity.

• Singapore and Mainland China are collaborating on interoperability of digital currencies and tokenized real-world assets (RWAs), forming a pan-Asian digital financial ecosystem. These efforts are supported by regional regulatory frameworks that promote passporting and licensing for digital asset firms.

Regulatory Landscape and Licensing:

Regulators are providing clearer frameworks to facilitate institutional participation:

• The U.S. SEC has approved WisdomTree’s 24/7 trading and settlement for a digital fund, aligning traditional markets with the demands of continuous digital asset trading.

• In Europe, the Markets in Crypto-Assets (MiCA) regulation has matured, enabling passporting and licensing for stablecoin issuers and digital asset custodians. Examples include BVNK securing a Malta MiCA license and OKX obtaining an EU Payment Institution license, broadening their regional operations.

• In Hong Kong, the Securities and Futures Commission (SFC) has granted licenses to firms such as Victory Fintech (VDX), reinforcing the city’s status as a regional hub for digital securities.

• Globally, platform licensing is accelerating, with firms like OKX, BVNK, and VARA in Dubai securing operational licenses, ensuring market integrity and regulatory compliance amid increasing cross-border activity.

Emerging Trends and Innovations:

The regulatory environment is also fostering experimentation:

• The UK Financial Conduct Authority (FCA) has launched a stablecoin sandbox, allowing firms like Revolut to test issuance and use cases, signaling a proactive stance toward regulatory innovation.

• The SEC’s approval of WisdomTree’s platform and the issuance of over $10 billion in tokenized US Treasuries by firms like Circle highlight the expanding role of stablecoins and real-world assets (RWAs) in instant cross-border liquidity.

Risks and Challenges:

Despite these advancements, industry faces significant risks:

• The Bithumb incident, where a $43 billion Bitcoin crediting error occurred, underscores the necessity for robust operational controls to maintain trust and stability.

• The threat of illicit activities persists, with investigations revealing $11 billion in transactions linked to sanctions evasion. Strengthening AML (Anti-Money Laundering) and CFT (Countering Financing of Terrorism) measures remains crucial.

• Security vulnerabilities in custody and settlement infrastructures demand continuous resilience enhancements to prevent cyberattacks and operational failures.

Outlook:

Looking ahead, the push toward interoperable, regulated digital ecosystems hinges on international cooperation, robust operational controls, and adaptive regulatory frameworks. These elements will be vital to balance innovation with risk mitigation, especially as cross-border settlement becomes more seamless and market infrastructure continues to evolve.

The convergence of tokenized securities, CBDCs, stablecoins, and platform licensing is setting the stage for a more efficient, transparent, and resilient global financial ecosystem. As regulators and industry stakeholders collaborate, the vision of a truly interconnected digital financial infrastructure is increasingly within reach—heralding a new era where speed, liquidity, and security redefine the future of cross-border finance.