Tokenized collateral brings custody and settlement closer together
RWA Signal Insight
InfrastructureEurex Clearing and Societe Generale are advancing the integration of tokenized collateral into mainstream financial markets by aligning digital assets with existing institutional risk models and rulebooks. Eurex Clearing announced plans to incorporate digital securities, including European Stability Mechanism issuances, into its GC Pooling segment to maintain liquidity across traditional and digital markets. Simultaneously, Societe Generale completed a $10 million transaction using tokenized U.S. Treasuries on the Canton network, leveraging the DTCC’s Tokenisation Service. Zodia Custody CEO Richard Clark emphasizes that this shift requires unified custody and settlement infrastructure to support 24/7 asset movement without compromising security. By keeping assets segregated until the point of settlement, institutions can deploy collateral in real-time while mitigating counterparty risk. Regulatory bodies like the Bank of England and ESMA are actively consulting on how to apply existing CCP rulebooks to these digital instruments to ensure operational resilience. This evolution marks a critical step in bridging the gap between blockchain-based securities and established repo market financing arrangements.
Key points
- Eurex Clearing will integrate digital securities into its existing GC Pooling repo market framework.
- Societe Generale processed a $10 million tokenized Treasury transaction using the DTCC Tokenisation Service.
- Zodia Custody’s Interchange network enables real-time collateral deployment while maintaining segregated asset custody.
- Bank of England and ESMA are drafting regulatory frameworks to govern tokenized collateral in clearing.
Background
Zodia Custody is an institutional-grade digital asset custodian backed by Standard Chartered and SBI Holdings, designed to meet strict regulatory standards for financial institutions. It provides infrastructure for the secure storage, settlement, and management of digital assets, focusing on bridging the gap between traditional finance and blockchain ecosystems. The company's Interchange service specifically addresses the need for atomic settlement and collateral mobility across multiple trading venues.