Banks Blockchain Bet Comes Down to Moving the Money

AI summary of the source article

Wall Street institutions are moving beyond blockchain experimentation to deploy production infrastructure for tokenized deposits, securities, and settlement. While Morgan Stanley recently established a Digital Asset Lab, J.P. Morgan's Kinexys platform has processed over $3 trillion, and Citi Token Services has expanded across seven markets, including Japan and the UAE. HSBC also operates a 24/7 tokenized deposit service for corporate clients. Regulators are responding, with the CFTC preparing for mass tokenization and the SEC granting conditional relief for trading tokenized stocks. However, most bank deployments currently solve intra-network connectivity rather than cross-ledger interoperability.

Why it matters

Tokenization is increasingly operating as an alternative financial layer for custody, liquidity, and settlement rather than merely remaining an isolated product experiment.

Key facts

• Kinexys by J.P. Morgan has processed over $3 trillion since inception and averages more than $5 billion in daily transactions.
• Citi Token Services expanded into Japan and the United Arab Emirates, bringing its live tokenized deposit footprint to seven markets.
• The SEC issued an Innovation Exemption providing conditional relief for certain venues to trade tokenized National Market System stocks on permissioned rails.