Tokenized Collateral Pilot Succeeds, but Citi and DTCC Warn Regulation Is Lagging

Citi, DTCC Say Tokenized Collateral Is Ready — But Global Rules Lag Behind

November 6, 2025

Tokenized collateral is working in practice, but the lack of legal clarity remains a roadblock to global adoption, according to executives from Citi, DTCC, and Taurus speaking at the SmartCon conference in New York on Wednesday.

Citi’s tokenized cash platform, known as Citi Token Services, is already live in the U.S., U.K., Hong Kong, and Singapore, processing billions in client transactions. The system enables on-chain movement of funds for trade finance and capital markets settlement — proof, said Ryan Rugg, Citi’s global head of digital assets, that real-world tokenization is no longer experimental.

“It’s being used regularly, not just during off hours or weekends,” Rugg said. “That shows genuine client adoption.”

Even so, Rugg noted that scaling across markets is hindered by fragmented regulation. Citi must secure approval in each jurisdiction, slowing efforts to build a unified, frictionless, multi-bank network.

DTCC’s Nadine Chakar echoed that challenge. The firm’s Great Collateral Experiment showed tokenized Treasuries, equities, and money market funds could serve as cross-border collateral, but the biggest issue, she said, isn’t technology — it’s legal enforceability.

“We all talk about interoperability,” Chakar said. “But does it truly work across systems and legal structures? Right now, it doesn’t.”

Taurus co-founder Lamine Brahimi cited Switzerland as a model for harmonized legal and technological standards, urging U.S. and global regulators to move faster or risk fragmentation and inefficiency.

Panelists agreed that wallet-based infrastructure could eventually complement or replace traditional account systems, but warned that innovation is outpacing policy.