Key Takeaways
- Binance’s Richard Teng said tokenization is moving toward a major market inflection point.
- Clearer rules could help institutions connect blockchain systems with regulated capital markets.
- Settlement, custody, and transfer systems may shape tokenized finance’s next phase.
Tokenization Outlook Centers on Regulation and Access
Binance CEO Richard Teng shared on X on May 21 that tokenization is approaching a “major turning point.” Teng cited clearer regulations, more institutional access, growing real-world adoption, and Depository Trust & Clearing Corporation (DTCC) and Nasdaq integration pathways. He said the next 12 to 18 months could define tokenized finance.
“Tokenization is getting closer to a major turning point,” Teng wrote. Regulatory frameworks are moving toward operational rules for tokenized finance in 2026. In the U.S., the CLARITY Act cleared the Senate Banking Committee on May 14 as a central digital-asset market structure proposal. The bill aims to clarify which digital assets fall under Securities and Exchange Commission (SEC) oversight and which fall under Commodity Futures Trading Commission (CFTC) oversight. Tokenized stocks, bonds, and funds remain securities when they represent securities on blockchain infrastructure.
Institutional access is expanding as banks, custodians, ETF issuers, and exchanges connect tokenization with capital-market systems. Blackrock’s BUIDL tokenized Treasury fund, Franklin Templeton’s blockchain-based fund administration, and JPMorgan’s Kinexys platform show that shift. Goldman Sachs and BNY Mellon are building tokenized money-market infrastructure. Securitize’s partnership with Computershare links tokenized securities with traditional transfer-agent systems. Spot bitcoin and ethereum exchange-traded funds (ETFs) also broadened institutional access through brokerage, retirement, and portfolio platforms.
Real-World Adoption Moves Into Market Infrastructure
Real-world adoption in 2026 is centered on tokenized money, collateral, Treasurys, and settlement infrastructure. Bank of Montreal introduced plans on March 24 for tokenized cash capabilities using CME Group’s permissioned network on Google Cloud Universal Ledger. JPMorgan is expanding tokenized collateral transfers and tokenized repo operations. Citi is developing tokenized deposit systems. HSBC has expanded tokenized gold and tokenized deposit pilots in Hong Kong.
DTCC and Nasdaq pathways connect tokenization with core financial-market infrastructure. Nasdaq recently received SEC approval for a rule change permitting securities to trade in tokenized form under defined conditions. DTCC is developing DTC Tokenization Service infrastructure for real-world assets in a controlled and regulated environment. Intercontinental Exchange is working with Citigroup, BNY Mellon, and other institutions on tokenized deposit systems tied to clearinghouses.
Teng stated:
“The next 12–18 months could be defining.”
The four points in Teng’s post outline a tokenization market moving through regulation, institutional infrastructure, real-world use, and settlement integration. The near-term model points toward permissioned blockchain settlement connected to regulated banking, exchange, custody, clearing, and transfer systems. That structure places tokenized assets beside existing securities infrastructure across global capital markets. It also frames tokenization as operational market infrastructure, with banks and exchanges using blockchain rails for collateral mobility, settlement speed, transparency, and compliance controls.