DTCC, Euroclear, and Clearstream warn that tokenized securities face challenges in cost and liquidity

DTCC, Euroclear, and Clearstream have released a white paper, pointing out that tokenized securities will struggle to scale if there is a lack of interoperability between blockchain and traditional market infrastructures. They propose a "network interconnection" model that requires unified standards, gateways, and regulated service providers to ensure asset integrity, ownership, and legal compliance, while also avoiding liquidity fragmentation and increased operational risks. The white paper calls for regulators and market participants to collaborate, promoting governance, standards, and resilience, so that tokenization can realize potential advantages such as faster settlement and more efficient collateral usage.