Banks Bet on Tokenized Assets, But Only 15% Are Production-Ready

Banks are accelerating their adoption of tokenized assets, from deposits to securities, to streamline settlement and unlock new efficiencies. However, only 15% of custody infrastructure is considered production-ready, according to a new analysis by Fireblocks published on September 10, 2026. This gap underscores the significant challenges institutions face in scaling digital asset operations.

Tokenized finance is gaining momentum as banks explore ways to compress the time between transaction intent and execution. Digital assets enable real-time settlement, reducing the capital trapped in traditional processes, and cutting operational risk. Examples include tokenized collateral pledges and payments, which allow for faster allocation of resources and improved liquidity management.

Key Use Cases: Deposits, Securities, and Payments

One of the standout developments is the rise of tokenized deposits. Unlike stablecoins, tokenized deposits are recorded on distributed ledger technology but remain within the traditional banking framework. Recent initiatives, such as the Cari Network, have brought six U.S. regional banks into live production. With 30 more banks committed and 40 in active discussions, the network boasts a combined pipeline of over $10 trillion in assets.

On the securities side, the Depository Trust & Clearing Corporation (DTCC) made headlines on July 15, 2026, by executing its first live tokenized securities trades. This involved 22 transactions across collateral pledges and margin workflows. Citadel Securities participated, while J.P. Morgan tokenized an equity position to post as margin at CME Group. These developments hint at the transformative potential for margin efficiency, where a single pool of collateral can be allocated dynamically across venues.

Payment systems are also evolving. In June 2026, Open Standard launched OUSD, a stablecoin initiative backed by Visa, Mastercard, and over 140 financial institutions. This aims to streamline card settlement, same-day clearing, and cross-border treasury operations without requiring traditional correspondent banking timelines.

Regulatory and Infrastructure Hurdles

While the benefits of tokenization are clear, the infrastructure to support these innovations remains a bottleneck. According to Fireblocks, building a robust “control layer”—the infrastructure that governs custody, visibility, and transaction approval—is paramount. This layer is adaptable and can facilitate various use cases, from deposit settlement to card payment processing, depending on the overlaying applications.

Interoperability is another critical challenge. For regulated institutions, exchanging compliance and counterparty data across different blockchain networks is essential before transactions can settle securely. Projects like the Open Transaction Layer aim to address this by creating an open standard for pre-settlement data exchange.

The Race for Market Leadership

The push into tokenized assets isn’t limited to banks. Non-bank entities like Kraken and Coinbase have secured specialized charters to offer digital asset services. Asset managers are also entering the fray. BlackRock’s tokenized money market fund, BUIDL, launched on a public blockchain, allowing direct access for qualified investors holding USDC. Meanwhile, retail-facing platforms like Robinhood and Meta are integrating digital asset features directly into their apps, targeting a broader user base.

For banks, delaying action risks losing competitive ground. The operational rules being written today by early adopters such as DTCC, Cari Network participants, and OUSD partners will set the standard for future entrants. By 2027, the landscape could shift dramatically, with tokenization extending beyond payments and collateral into less explored areas of banking.

Outlook

According to Fireblocks, 88% of financial institutions will have allocated budgets to digital asset infrastructure by the end of 2026. But with only 16% currently live in production, the gap between commitment and execution remains wide. As regulatory clarity improves and infrastructure matures, the race to capture the value of digital assets will only intensify. Key industry events, such as SIBOS in Miami later this month, will likely shed further light on how banks can close this gap and secure their place in the evolving financial ecosystem.

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