The Securities and Exchange Commission issued a "token taxonomy" outlining which digital assets it considers securities. The guidance labels stablecoins, digital collectives and digital commodities as non-securities and specifies how federal securities laws are applicable to protocol mining, staking and crypto airdrops. The guidance establishes that digital securities are subject to SEC regulation. "We're not the securities and everything commission anymore," Chair Paul Atkins said.

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US credit average daily notional volumes reached $62 billion in February, a 13% increase from a year ago, driven by macroeconomic and geopolitical uncertainty, according to Coalition Greenwich. The report notes that while most small trades are conducted electronically, trades of more than $5 million are primarily executed via voice or chat. "These trades remain the holy grail for trading venues and the fastest path toward increased electronification broadly," the report states.

Nadine Chakar, global head of digital assets at the Depository Trust & Clearing Corporation, discusses the use cases and benefits of tokenization in a Bloomberg Crypto interview conducted during the FIA Global Cleared Markets Conference in Boca Raton, Fla. Chakar emphasizes that tokenization offers choice and flexibility for financial markets.

Euroclear and Clearstream have introduced dematerialized processes for Eurobond issuance, eliminating the need for physical certificates. The move is expected to enhance processing times, operational efficiency and cost-effectiveness while reducing risks such as loss and theft.

The Depository Trust & Clearing Corp. is working on a tokenization project that allows tokenized securities to be settled outside traditional infrastructure, utilizing approved blockchains for atomic settlement. The project, supported by a three-year no-action letter from the Securities and Exchange Commission, aims to enhance collateral mobility, although the tokens currently do not hold collateral value within the DTCC risk management framework.

US Securities and Exchange Commission Chair Paul Atkins has suggested an "innovation exemption" to facilitate limited trading of certain tokenized securities, aiming to develop a long-term regulatory framework. Atkins emphasizes the need for rationalizing corporate reporting rules to achieve the "minimum effective dose of regulation."

The Office of the Comptroller of the Currency is allowing crypto firms such as Ripple and Crypto.com to pursue national trust bank charters, signalling a push to integrate digital assets into the banking system. The move, led by Comptroller Jonathan Gould, has drawn opposition from traditional banks concerned about new competition and regulatory consistency.

Tokenization is gaining traction as a transformative force in financial markets, with the European Securities and Markets Authority highlighting its potential to introduce operational and technological risks. ESMA's latest risk monitoring report notes that while tokenization can enhance efficiency through automation and real-time settlement, it also brings challenges such as smart contract vulnerabilities and digital wallet security. The report cites research predicting significant growth in tokenized assets, from $600 billion in 2025 to $18.9 trillion by 2033, but adoption remains limited due to interoperability issues and regulatory uncertainty.