Up to 77% of Institutions Expect Tokenized Collateral Use in 2026
RWA Signal Insight
InfrastructureInstitutional adoption of tokenized collateral is accelerating as firms seek to mitigate the inefficiencies of traditional settlement systems. Currently, 5% of monthly repurchase agreement volume is executed via tokenized assets, with 77% of institutions projecting usage by 2026. Global systemically important banks manage $74 billion in daily collateral, yet operational frictions leave 25% of these assets idle. For a typical Tier 1 institution, this inactivity results in approximately $15 billion in trapped capital and $346 million in lost annual income. Tokenization addresses these gaps by enabling 24/7 mobility of cash, money-market funds, and government bonds across time zones. A significant milestone is scheduled for October 2026, when the DTCC plans to introduce tokenized U.S. Treasurys to the market. This transition toward programmable collateral represents a fundamental shift in how major financial institutions optimize liquidity and margin management.
Key points
- 77% of institutions anticipate utilizing tokenized collateral by 2026.
- DTCC plans to launch tokenized U.S. Treasurys in October 2026.
- Idle collateral costs Tier 1 institutions roughly $346 million in annual income.
- Tokenized assets currently account for 5% of monthly repo market volume.
Background
The Depository Trust & Clearing Corporation (DTCC) is the primary central securities depository for the United States financial markets. It provides clearing, settlement, and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, and money market instruments. By integrating tokenization, the DTCC aims to modernize legacy settlement infrastructure to improve capital efficiency.