Wall Street Drives Tokenization Push as U.S. Law Catches Up

Wall Street is accelerating “tokenization” to rebuild market plumbing for a 24/7 economy, not just to adopt blockchain. This week’s momentum includes: BMO plans tokenized cash capabilities with CME Group and Google Cloud for real-time payments and off-hours margin activity; Nasdaq received SEC approval to allow tokenized trading and settlement for certain stocks and ETFs; U.S. bank regulators said tokenized securities won’t face extra capital charges solely due to blockchain use; and on March 25, the House Financial Services Committee held a hearing and is drafting legislation to adapt securities rules to tokenized activity. The article frames tokenization as a way to automate issuance, transfer, and collateral usage—especially mobile collateral during stress—while raising the bigger question of who controls the “software layer” beneath capital markets. It also highlights that lawmakers are considering whether the SEC and CFTC should conduct joint studies, and whether intermediaries can rely on blockchain records under defined conditions. Key institutions repeatedly named include BlackRock, JPMorgan (Kinexys), Citigroup (tokenized payments), Nasdaq, DTCC, and the NYSE ecosystem. While supporters emphasize efficiency and continuity of settlement, risks remain: cross-chain fragmentation, incomplete interoperability, and unclear legal enforceability. For traders, the takeaway is that tokenization is moving from pilot projects toward regulated infrastructure—supportive for RWA narratives, but unlikely to directly change crypto spot flows in the near term.