Tokenisation is Becoming a Market Structure Story

The discourse surrounding tokenization is evolving from a focus on individual asset representation to the fundamental restructuring of financial markets. TP ICAP highlights that industry leaders are now prioritizing continuous trading, precision settlement, and on-chain cash to unlock practical value. The UK's Financial Conduct Authority is currently engaging with market participants to establish a regulatory framework for tokenized gold, signaling a shift toward institutional adoption. Major entities like the London Stock Exchange are exploring 24/5 trading models to address the limitations of legacy settlement windows. Euroclear has successfully piloted the use of tokenized gold, Gilts, and Eurobonds to improve collateral mobility and real-time transaction efficiency. Furthermore, institutions including Swift are working to integrate digital cash solutions, recognizing that tokenized assets require native settlement mechanisms to achieve full operational efficiency. This transition marks a move away from theoretical experimentation toward the development of robust, digitally compatible market infrastructure. Ultimately, the ability to settle transactions with greater flexibility and speed is expected to significantly reduce capital friction across repo, securities lending, and derivatives markets.