
Up to 77% of Institutions Expect Tokenized Collateral Use in 2026
Institutional 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.














