Market infrastructure firms warn tokenized securities face higher costs, split liquidity without interoperability

The world’s largest market infrastructure operators are warning that tokenized securities will struggle to scale unless the industry agrees on how blockchains and traditional finance systems connect.

In a joint white paper, the Depository Trust and Clearing Corporation (DTCC), Euroclear and Clearstream, working with Boston Consulting Group, argued that “interoperability is a prerequisite for digital asset security (DAS) adoption at scale.” Without it, they wrote, assets risk being trapped on isolated networks, leaving “operational costs high” and liquidity fragmented as trading volumes grow.

The group stopped short of endorsing any single technology. Instead, it framed the problem as structural. Dozens of public and permissioned blockchains now host pilots and live products. Each uses its own standards, smart contract logic and settlement design. That diversity, the paper says, makes integration harder and increases operational and regulatory risk.

The authors rejected the idea that one dominant ledger will emerge. The operating model, they said, is shifting toward a “network-of-networks, with standards, gateways, and regulated service providers” linking digital and traditional systems. In that environment, assets must move across platforms while preserving what the paper calls “the asset’s integrity, ownership rights and lifecycle, with full legal and regulatory compliance.”

They summarized the goal in a short phrase: “same asset, same rights, same outcome.”

The warning comes as tokenization gains ground in repo markets and pilot programs across the U.S. and Europe. While onchain securities remain small compared with global equity and FX markets, the paper notes that large-scale infrastructure is already in motion, including more than $300 billion in daily repo activity across major platforms.

Still, many workflows depend on legacy rails. Tokenized bonds may trade on-chain, but cash often settles through real-time gross settlement systems or bank payment networks. Custodians and central securities depositories still maintain books of record. The paper assumes this coexistence will last for years.

The framework also extends beyond technical bridges. Interoperability, the authors argued, must cover assets and liabilities, ownership recognition, lifecycle events, ledger finality and legal enforceability. Without alignment across those layers, cross-chain or cross-border transactions may require extra reconciliation steps that erode promised efficiency gains.

The group called on regulators and market participants to develop working groups focused on governance, standards and resilience. “Collective action today will shape resilient markets tomorrow,” the paper states.

That push comes as major Wall Street firms argue tokenization could reshape financial markets by enabling 24/7 trading, faster settlement and more efficient use of collateral. Executives at large banks and asset managers have said blockchain-based rails may eventually reduce back-office costs and free up capital tied up in multi-day settlement cycles. Some have described tokenized assets as a path toward more integrated global markets, where cash and securities move in near real time.

The paper does not dispute that vision. Instead, it suggests that achieving it depends less on launching new chains and more on aligning the rules that govern them.