Financial giants Citi and DTCC: Tokenized collateral is technically feasible, but inconsistent regulation poses the biggest obstacle

According to CoinDesk, financial giant Citi and DTCC revealed at New York's SmartCon that cross-asset, cross-border "Tokenized Collateral" is already operational in real transactions, with technological feasibility being overshadowed by inconsistent regulations as the biggest obstacle.

Citi stated that "Citi Token Services" has been launched in the U.S., U.K., Hong Kong, and Singapore, handling billions in customer fund flows and settlements; DTCC's "Great Collateral Experiment" verifies that tokenized U.S. Treasuries, stocks, and money market funds can be used as collateral across time zones.

The three parties emphasized the need for unified laws and standards, with institutions like SWIFT participating in the development of shared protocols, or else they will face fragmentation and compliance conflicts.