Asset tokenization is rewiring the architecture of US capital markets [Crypto Insight]

Asset tokenization spans real estate, government bonds, funds, raw materials and private credit, but in US capital markets the conversation has sharpened around tokenized securities. When shares, bonds and fund interests are tokenized, the central question is which infrastructure will connect rights records, transfers, settlement, custody, collateral and regulatory data.

The SEC set out its position in January, stating that tokenized securities would be handled within the existing securities framework. Even when shares or bonds are represented as tokens, dividend rights, voting rights, redemption claims, transfer restrictions and investor-protection obligations remain intact. The SEC distinguishes between issuer-led and third-party-led tokenized securities. Third-party-led structures can extend to arrangements in which the listed company is not directly involved, making the holding of underlying securities, investor rights, dividend and voting-right processing, and custody and insolvency risk the key points of contention.

Nasdaq received SEC approval in March, opening the door for tokenized securities to be processed within its existing exchange infrastructure. Tokenized securities eligible for DTCC depository settlement share the same security identifiers and ticker symbols as conventional securities and settle through the Depository Trust & Clearing Corporation. Order routing, execution, market surveillance and market data all follow existing frameworks. The US tokenized securities market is taking shape by adding a tokenized record format inside the existing securities market and managing it under the same order book, surveillance and settlement rules.

The New York Stock Exchange is also advancing a tokenized securities platform and standards for digital transfer agents — the function that manages shareholder registries and rights transfers. For tokenized securities to become genuine capital market products, shareholder registry management, dividend and voting-right processing, transfer restrictions and investor eligibility verification must all work before around-the-clock trading can. Digital asset exchange Bullish agreed in May to acquire transfer agent Equiniti for $4.2 billion, underscoring the growing value of shareholder registry, dividend and rights-transfer infrastructure.

The DTCC's moves illustrate this shift clearly. The clearing and settlement giant is preparing a tokenization service in collaboration with more than 50 financial institutions, targeting an October launch. The service is designed to layer tokenized rights records and cross-chain interoperability onto the existing depository settlement structure. Competitive advantage in asset tokenization will come down to who controls the standards for rights and settlement.

Collateral infrastructure is moving in the same direction. The collateral infrastructure appchain that DTCC is developing with Chainlink seeks to connect collateral providers, receivers, managers, tri-party collateral agents and custodians on a single shared infrastructure. Real-time visibility into collateral location, ownership, availability and transfer history can reduce overcollateralization and liquidity buffers. That signals tokenization is reshaping not just trading but the standards for collateral movement and liquidity management as well.

South Korea risks missing the core market if it approaches token securities solely through the lens of fractional investment products. What is needed is a redesign of the connective architecture linking canonical records, rights determination, transfer agency, custody, settlement, collateral management and regulatory data. The roles of the Korea Securities Depository, exchanges, brokerages, banks and custodians must also be redistributed. The United States is designing asset tokenization as a digital upgrade of existing capital market infrastructure. South Korea, too, should prepare for a restructuring of its capital market operating framework before focusing on tokenized products themselves.