ISLA: Tokenised collateral moves towards scale
18 June 2026 Portugal
Image: stock.adobe.com/RezaArif
Tokenisation is moving from experimentation towards commercial adoption, but market participants must still resolve challenges around interoperability, regulation, risk management, and collateral mobility, according to speakers at ISLA鈥檚 33rd Annual Securities 麻豆影视传媒 & Collateral Management Conference.
The 鈥楲iquidity Revolution: Wallets, Tokens, & Global Access鈥� panel was moderated by Seha Islam, digital assets product, operations, and risk leader at EY. She was joined by Yalini Isweran, executive director, head of Digital Launchpad, DTCC Digital Assets; James Pollock, EMEA sales director at Digital Asset; Marton Szigeti, global head 鈥� collateral, lending and liquidity at Clearstream; and Diego Zuluaga, executive director, government and regulatory affairs at Goldman Sachs.
Opening the discussion, the panel considered whether tokenisation could become one of the key inflection points for securities finance in 2026. Speakers agreed that the technology has advanced significantly, but suggested the more important development has been the emergence of clearer policy and regulatory frameworks in the US, UK, and Europe.
One speaker noted that Europe has had frameworks to support tokenisation for some time, including experimental regimes and the distributed ledger technology (DLT) pilot. However, recent US regulatory clarity has helped shift the global conversation from testing technology to considering how it can change markets at scale.
The panel believe that the next phase of development requires a whole-lifecycle approach. Primary issuance and secondary trading have been the initial focus, but speakers said the market must now address settlement, custody, asset servicing, lending, pledging, margining, and collateral mobilisation.
Digital securities depositories were highlighted as part of this evolution. One panelist said the concept represents a move beyond digital bond issuance towards full digital securities infrastructure, including settlement, custody, asset servicing, collateral facilities, financing, and cash flows.
The panel also discussed the importance of cash settlement for tokenised markets. Speakers noted that possible settlement assets include regulated stablecoins, tokenised bank deposits, wholesale central bank money, and other forms of onchain cash.
Collateral mobility was identified as one of the clearest commercial opportunities for tokenisation, particularly because of the scale and volume of securities finance activity. The panel said central banks are beginning to clarify the eligibility and treatment of tokenised collateral, which could support wider adoption.
Interoperability was another major theme. Speakers warned that many distributed ledger projects have historically fallen into one of two categories: isolated walled gardens with limited utility, or fully open networks lacking the privacy, governance, and control required by institutional markets.
One panellist said the market is now approaching an inflection point, quoting Ernest Hemingway, saying: 鈥淓verything happens slowly and then all at once.鈥�
The panel suggested that issuance and transfer are only the starting point. To create real utility, tokenised markets must support lending, pledging, and margining, while preserving privacy, governance, and operational control.
Atomic settlement was also discussed, with speakers warning against confusing atomic settlement with instant settlement. One panellist argued that atomic settlement should be treated as a technical feature rather than a requirement, and that market participants must retain the ability to control, pause, or sequence transactions where necessary.
The discussion then turned to new market participants and hybrid collateral models. The panel noted that holders of crypto assets increasingly want to finance those assets in ways that resemble traditional securities finance, but with a different risk profile. This has created demand for structures where crypto assets and real-world assets can be used together within controlled collateral arrangements.
One speaker said this demonstrates that digital assets and traditional market infrastructure will need to coexist. The panel agreed that traditional principles of risk management, liquidity management, and collateral management remain essential, even where assets move faster or settle onchain.
Cross-border collateral mobilisation was identified as one of the most important use cases. Speakers said tokenisation could help firms move assets across jurisdictions and time zones more efficiently, but only if common standards and interoperable infrastructure are developed.
The panel warned that token standards, data consistency, and platform connectivity will be critical. If each market participant creates tokenised securities data differently, the benefits of mobility could be lost.
A speaker said the goal should be infrastructure that is neutral and interoperable, regardless of the underlying blockchain, token agent, or market participant involved.
Regulatory fragmentation remains a challenge. Speakers noted that even within Europe, differences in tax law, property law, corporate law, and settlement processes continue to create barriers. Tokenisation may help bridge some of those gaps, but the panel cautioned that technology alone will not solve legal and regulatory fragmentation.
The panel also contrasted different policy approaches to digital money. Speakers noted that the US is more supportive of stablecoins, while Europe remains more focused on central bank digital currency and central bank money. These divergent approaches could shape how tokenised settlement and liquidity models develop across jurisdictions.
Despite these challenges, the panel suggested that fragmentation may be a natural phase of market development. One speaker said competition often creates fragmentation first, before the cost of that fragmentation eventually encourages convergence around common standards.
Risk management formed the final part of the discussion. Panelists considered whether a future market structure based on automated margin calls, AI agents, and real-time collateral movement could create new vulnerabilities.
The panel agreed that automation should support operational processes, but that human oversight remains essential during periods of stress. One speaker said that, in a crisis, firms want automation for routine tasks, but not for final judgment calls.
鈥淭here have to be safety breakers,鈥� one panellist said. 鈥淎 human being with authority and judgment needs to have a giant red button.鈥�
Looking ahead, the panel warned that intraday liquidity management could arrive sooner than many expect. While tokenisation may reduce friction and increase efficiency, speakers said markets must ensure that long-standing risk controls are not removed before new models are fully understood.
The panel concluded that tokenised collateral has moved beyond theory, but that successful adoption will depend on building interoperable infrastructure, preserving robust controls, and ensuring that digital market structures enhance 鈥� rather than undermine 鈥� the resilience of securities finance.
The 鈥楲iquidity Revolution: Wallets, Tokens, & Global Access鈥� panel was moderated by Seha Islam, digital assets product, operations, and risk leader at EY. She was joined by Yalini Isweran, executive director, head of Digital Launchpad, DTCC Digital Assets; James Pollock, EMEA sales director at Digital Asset; Marton Szigeti, global head 鈥� collateral, lending and liquidity at Clearstream; and Diego Zuluaga, executive director, government and regulatory affairs at Goldman Sachs.
Opening the discussion, the panel considered whether tokenisation could become one of the key inflection points for securities finance in 2026. Speakers agreed that the technology has advanced significantly, but suggested the more important development has been the emergence of clearer policy and regulatory frameworks in the US, UK, and Europe.
One speaker noted that Europe has had frameworks to support tokenisation for some time, including experimental regimes and the distributed ledger technology (DLT) pilot. However, recent US regulatory clarity has helped shift the global conversation from testing technology to considering how it can change markets at scale.
The panel believe that the next phase of development requires a whole-lifecycle approach. Primary issuance and secondary trading have been the initial focus, but speakers said the market must now address settlement, custody, asset servicing, lending, pledging, margining, and collateral mobilisation.
Digital securities depositories were highlighted as part of this evolution. One panelist said the concept represents a move beyond digital bond issuance towards full digital securities infrastructure, including settlement, custody, asset servicing, collateral facilities, financing, and cash flows.
The panel also discussed the importance of cash settlement for tokenised markets. Speakers noted that possible settlement assets include regulated stablecoins, tokenised bank deposits, wholesale central bank money, and other forms of onchain cash.
Collateral mobility was identified as one of the clearest commercial opportunities for tokenisation, particularly because of the scale and volume of securities finance activity. The panel said central banks are beginning to clarify the eligibility and treatment of tokenised collateral, which could support wider adoption.
Interoperability was another major theme. Speakers warned that many distributed ledger projects have historically fallen into one of two categories: isolated walled gardens with limited utility, or fully open networks lacking the privacy, governance, and control required by institutional markets.
One panellist said the market is now approaching an inflection point, quoting Ernest Hemingway, saying: 鈥淓verything happens slowly and then all at once.鈥�
The panel suggested that issuance and transfer are only the starting point. To create real utility, tokenised markets must support lending, pledging, and margining, while preserving privacy, governance, and operational control.
Atomic settlement was also discussed, with speakers warning against confusing atomic settlement with instant settlement. One panellist argued that atomic settlement should be treated as a technical feature rather than a requirement, and that market participants must retain the ability to control, pause, or sequence transactions where necessary.
The discussion then turned to new market participants and hybrid collateral models. The panel noted that holders of crypto assets increasingly want to finance those assets in ways that resemble traditional securities finance, but with a different risk profile. This has created demand for structures where crypto assets and real-world assets can be used together within controlled collateral arrangements.
One speaker said this demonstrates that digital assets and traditional market infrastructure will need to coexist. The panel agreed that traditional principles of risk management, liquidity management, and collateral management remain essential, even where assets move faster or settle onchain.
Cross-border collateral mobilisation was identified as one of the most important use cases. Speakers said tokenisation could help firms move assets across jurisdictions and time zones more efficiently, but only if common standards and interoperable infrastructure are developed.
The panel warned that token standards, data consistency, and platform connectivity will be critical. If each market participant creates tokenised securities data differently, the benefits of mobility could be lost.
A speaker said the goal should be infrastructure that is neutral and interoperable, regardless of the underlying blockchain, token agent, or market participant involved.
Regulatory fragmentation remains a challenge. Speakers noted that even within Europe, differences in tax law, property law, corporate law, and settlement processes continue to create barriers. Tokenisation may help bridge some of those gaps, but the panel cautioned that technology alone will not solve legal and regulatory fragmentation.
The panel also contrasted different policy approaches to digital money. Speakers noted that the US is more supportive of stablecoins, while Europe remains more focused on central bank digital currency and central bank money. These divergent approaches could shape how tokenised settlement and liquidity models develop across jurisdictions.
Despite these challenges, the panel suggested that fragmentation may be a natural phase of market development. One speaker said competition often creates fragmentation first, before the cost of that fragmentation eventually encourages convergence around common standards.
Risk management formed the final part of the discussion. Panelists considered whether a future market structure based on automated margin calls, AI agents, and real-time collateral movement could create new vulnerabilities.
The panel agreed that automation should support operational processes, but that human oversight remains essential during periods of stress. One speaker said that, in a crisis, firms want automation for routine tasks, but not for final judgment calls.
鈥淭here have to be safety breakers,鈥� one panellist said. 鈥淎 human being with authority and judgment needs to have a giant red button.鈥�
Looking ahead, the panel warned that intraday liquidity management could arrive sooner than many expect. While tokenisation may reduce friction and increase efficiency, speakers said markets must ensure that long-standing risk controls are not removed before new models are fully understood.
The panel concluded that tokenised collateral has moved beyond theory, but that successful adoption will depend on building interoperable infrastructure, preserving robust controls, and ensuring that digital market structures enhance 鈥� rather than undermine 鈥� the resilience of securities finance.
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