Banks Bet Big on Tokenized Assets, But Infrastructure Falls Short

Banks are rapidly adopting tokenized assets to streamline settlement and unlock new efficiencies. However, only 15% of custody infrastructure is considered production-ready, highlighting significant challenges in scaling digital asset operations.

The growth of tokenization is driven by the potential for real-time settlement, reduced capital trapped in traditional processes, and lower operational risk. Examples include tokenized collateral pledges and payments, which enable faster allocation of resources and improved liquidity management.

In tokenized deposits, assets are recorded on distributed ledger technology but remain within the traditional banking framework. The Cari Network has brought six U.S. regional banks into live production, with 30 more committed and 40 in active discussions. This network boasts a combined pipeline of over $10 trillion in assets.

On the securities side, the Depository Trust & Clearing Corporation (DTCC) executed its first live tokenized securities trades on July 15, 2026. Citadel Securities participated, while J.P. Morgan tokenized an equity position to post as margin at CME Group.