Tokenized securities are becoming part of traditional financial operations as banks expand their use of blockchain technology for financing, custody and settlement, according to Edwin Mata, CEO and co-founder of tokenization platform Brickken.
In commentary shared with Crypto Briefing, Mata said recent developments involving BNY, Citadel Securities and Deutsche Bank suggest financial institutions are moving toward practical applications of tokenized assets.
The expansion comes as parts of the crypto industry increasingly focus on bringing traditional financial instruments onto blockchain networks, including government bonds and equities.
However, resistance from major US companies to tokenized versions of their shares highlights challenges facing the sector.
BNY and Citadel demonstrate how tokenization can unlock liquidity
BNY and Citadel Securities completed a transaction involving a tokenized two year US Treasury note, marking the first use of tokenized assets on a major triparty repo platform.
The Treasury was recorded on BNY’s private digital ledger and settled within minutes rather than through the traditional next business day settlement cycle.
Citadel Securities subsequently used the tokenized Treasury as collateral to secure overnight financing.
Mata said the transaction demonstrates how digital securities can move more efficiently between trading, settlement and financing activities.
Faster settlement could allow financial institutions to access liquidity sooner and reduce capital tied up during transaction processing.
He expects more banks to explore similar arrangements involving government bonds and other liquid securities, although broader adoption will depend on connecting different custodians and financial platforms.
Deutsche Bank prepares to expand tokenized asset services
Deutsche Bank is preparing to launch digital asset custody services in Germany, with plans to expand into Asia in 2027.
The bank initially intends to support Bitcoin and Ethereum custody before introducing stablecoin transactions, tokenized deposits and blockchain based securities issuance.
Mata said the expansion could allow institutional clients to issue, hold and transact in tokenized securities through existing banking relationships.
JPMorgan also announced Monday that it had expanded JPM Coin, its dollar denominated deposit token, to Ethereum for institutional clients, following its initial launch on Base in November 2025.
The expansion allows institutional clients to transfer tokenized dollar deposits around the clock, supporting faster payments and settlement of digital asset transactions.
The development reinforces Mata’s view that major financial institutions are increasingly integrating tokenized deposits, custody and securities settlement into their existing operations.
US companies push back against tokenized stock trading
Despite growing institutional interest, tokenized equities are facing resistance from publicly listed companies concerned about how blockchain based trading could affect their shares.
Nine US companies, including Broadcom, Verizon and CoreWeave, have objected to tokenized versions of their stocks trading on OKXICE, citing concerns over pricing, liquidity and volatility.
Mata said these objections could lead to greater issuer involvement in how tokenized shares are represented, traded and recorded.
Platforms may also need stronger safeguards governing ownership records, corporate actions and price consistency between traditional and blockchain based markets.
Meanwhile, crypto companies are increasingly expanding beyond conventional digital assets into traditional financial products.
Kraken’s parent company, Payward, has expanded its partnership with Nasdaq to develop tokenized equity infrastructure, reflecting the industry’s growing focus on integrating crypto with traditional markets.
Mata expects financial institutions to expand custody, issuance and settlement services over the next twelve months, with interoperability becoming an important factor in broader adoption.
“BNY’s transaction is an important example of how tokenisation can improve the way securities are used in financial markets,” Mata said.
“We are beginning to see financial institutions apply this technology to settlement, financing and custody, which are activities they already manage every day.”
He added that the next stage will focus on making these capabilities available across more institutions and markets, allowing issuers and investors to use tokenized securities more easily.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.