Executives from Citi and the Depository Trust & Clearing Corporation (DTCC) confirmed that tokenized money and collateral are already being used in live, cross-border transactions, signaling that the shift from pilot projects to production systems is officially underway.
Speaking at a financial infrastructure roundtable this week, Ryan Rugg, Citi’s Global Head of Digital Assets, revealed that Citi Token Services is now operating in several countries and processing billions of dollars in real client transactions using tokenized deposits. The service enables instant movement of value across jurisdictions, replacing traditional settlement processes that often take multiple days.
Technology Readiness and Operational Validation
Both Citi and DTCC have now validated through pilots and live applications that tokenized collateral and deposits function reliably on distributed ledgers. The underlying infrastructure supports 24/7 settlement, instant transfer of ownership, and automated reconciliation, which could dramatically increase capital efficiency and liquidity across global markets.
According to DTCC, the same core technology is already being applied in its Collateral AppChain platform, a framework designed to let banks and asset managers issue, track, and move tokenized assets securely within regulatory boundaries.
The Roadblock: Regulatory Fragmentation
Despite these advances, executives warned that regulatory inconsistency remains the biggest roadblock. Rules around tokenized money, digital securities, and collateral differ widely between jurisdictions, often preventing interoperability.
Rugg noted that “the tech is ready, it’s the policy alignment that isn’t.” Without coordinated legal standards, institutions risk building fragmented systems that cannot communicate or settle across borders, limiting the potential benefits of tokenization.
Industry Collaboration and Emerging Regulatory Steps
The DTCC’s long-term strategy focuses on providing a resilient, compliant base layer so institutions like Citi, Clearstream, and Euroclear can build tokenized products without duplicating investment. Collaboration between these major financial market infrastructures is seen as essential for scaling adoption.
Regulators, however, are starting to take notice. In September 2025, the U.S. Commodity Futures Trading Commission (CFTC) launched a formal initiative to explore tokenized collateral in derivatives markets, following the passage of new stablecoin legislation, an early sign that policy is beginning to catch up to the technology.
As Rugg concluded, the next phase isn’t about proving whether tokenization works, it’s about making it legal everywhere it’s needed.