Tokenisation Progresses: ESMA and DTCC Lead the Charge

The world of financial market infrastructure often goes unnoticed, functioning like the intricate gears in a machine. However, recent developments suggest it’s time to pay attention. Over the past week, pivotal announcements regarding the tokenisation of wholesale finance have emerged, indicating a substantial shift in how trades will be conducted in the future.

Significant Developments in Tokenisation

On October 9, 2026, the European Securities and Markets Authority (ESMA) launched a call for evidence addressing tokenisation within wholesale finance. This move was coupled with a consultation focused on tokenised collateral for central counterparties (CCPs). These inquiries included 30 critical questions about settlement finality, ownership rights, and liquidity risks, as noted by Investor Ideas.

Meanwhile, across the Atlantic, the Depository Trust and Clearing Corporation (DTCC) has been working on its tokenisation service, preparing for a commercial rollout on the Canton Network set for October 2026. As reported by The Defiant and FTF News, the pilot has progressed significantly and is transitioning from a conceptual project to a practical application.

DTCC's Tokenisation Journey

The DTCC’s efforts have yielded impressive results. In July 2026, the corporation initiated live trades using tokenised equities, exchange-traded funds, and US Treasuries already held in custody at the Depository Trust Company. The pilot involved over 30 participating firms, including heavyweight players like J.P. Morgan, BlackRock, and Goldman Sachs. With DTCC processing approximately $3.7 quadrillion in transactions annually, integrating even a fraction of this volume onto a shared ledger could create unparalleled dynamics within the blockchain sector.

As highlighted by FinTech Times, DTCC’s collaboration with Digital Asset, the company behind the Canton Network, aims to tokenise US Treasuries following a no-action letter from the Securities and Exchange Commission (SEC). What’s crucial now is not whether on-chain settlement is effective, but whether enough participants move collateral management and liquidity processes to the same platform. Such a shift could accelerate settlement cycles and enhance capital efficiency in post-trade environments.

Regulatory Developments in Europe

While innovations are occurring in the US, Europe is busy shaping regulations. ESMA’s call for evidence seeks to address the governance and interoperability challenges that arise with distributed ledger technology (DLT). In parallel, the consultation on tokenised collateral for European CCPs raises essential questions about the legal recognition of tokenised assets.

If a tokenised bond serves as margin at clearinghouses like LCH, Eurex, or Euronext, it must be ensured that it offers the same legal finality as its dematerialised counterpart held by custodians like Euroclear or Clearstream. Failing to establish this parity could necessitate significant adjustments within existing collateral frameworks.

The significance of this work is underscored by the Bank for International Settlements, which noted that since March 2026, the Eurosystem has begun accepting DLT-based assets as eligible collateral for credit operations. The International Monetary Fund has also emphasized that tokenisation is not just a minor improvement but a fundamental transition within market infrastructure.

Momentum in Asia

The developments in Asia reflect a quieter yet concrete advancement in tokenisation. The Hong Kong Monetary Authority has confirmed that its Central Moneymarkets Unit (CMU) settlement system will implement around-the-clock on-chain settlement by the end of 2026. Additionally, the Monetary Authority of Singapore is proactively working to settle tokenised MAS Bills using wholesale central bank digital currency, building on a successful 2025 trial.

India is making ambitious strides as well, with the Reserve Bank of India conceiving a Unified Markets Interface capable of asset tokenisation and settlement using wholesale CBDC. If this project unfolds similarly to the retail-payments rollout of the Unified Payments Interface, it could lead to an end-to-end sovereign system with novel capabilities.

The Challenges Ahead

Despite these advancements, challenges remain. Central counterparties must ensure that legal clarity is established around tokenised collateral to avoid complications during insolvency events. Questions around ownership, jurisdiction, and the implications of token representation must be addressed before widespread acceptance can occur.

The likelihood of using permissioned networks—where participants share a unified view of ownership—may be a beneficial route forward. The real competition lies not in public versus private blockchain systems but in achieving interoperability among various frameworks.

Looking Forward

As we head into the coming quarter, three key indicators will provide insights into the trajectory of tokenisation:

1. Will DTCC release usage statistics for its Canton service post-rollout, including data from non-pilot firms?
2. Will any European CCPs publicly commit to accepting tokenised collateral with a defined haircut schedule?
3. Will the HKMA successfully deliver 24/7 settlement on CMU by year-end, identifying participating firms and asset classes?

Should two out of three of these developments materialize, forecasts for tokenisation in financial market infrastructure will likely improve significantly for 2027. Conversely, if none come to fruition, there may be a return to pilot fatigue. However, momentum is currently leaning toward tangible results as the financial infrastructure evolves.

For investors, this shift underscores the importance of aligning with custodial chains that are integrated with these emerging platforms. Whether through tokenised Treasuries or new collateral opportunities in Europe, the stakes are real. Market evolution rewards those who engage proactively.