Asset Tokenization and U.S. Regulatory Challenges Could Push Financial Infrastructure Offshore

Asset tokenization records ownership interests in stocks, bonds and funds on a blockchain, potentially enabling instant settlement, 24-hour trading and programmable compliance. BlackRock, JPMorgan and Franklin Templeton have already launched related initiatives. If U.S. rules remain unclear, overseas markets may establish issuance, custody and settlement standards first, weakening U.S. dominance in capital markets.

The Blockchain Association formed a tokenization working group on March 26, 2026, and rebutted arguments from Citadel Securities in a submission to the SEC on April 6. In December 2025, the SEC allowed DTCC, which manages more than $100 trillion in assets, to pilot the tokenization of Russell 1000 stocks, U.S. Treasuries and major ETFs, with the program scheduled to begin in the second half of 2026. On June 12, the industry urged the United States to pass legislation.