Market infrastructure firms including the DTCC, Euroclear, and Clearstream have raised concerns about the growing use of tokenized securities, warning that without standardized interoperability, these assets could lead to fragmented liquidity and increased operational costs. They emphasize the need for consistent treatment of assets across both traditional financial systems and distributed ledger technologies, advocating for the principle that identical securities should carry the same rights and outcomes regardless of their underlying platform.
The organizations stress that a lack of integration between blockchain networks and legacy finance infrastructures may result in duplicated processes, reduced efficiency, and higher transaction fees. Without shared protocols and unified settlement mechanisms, investors and institutions could face challenges in achieving seamless cross-border trading and clearing. These issues underscore the importance of developing common technical standards to ensure that digital securities function reliably within the broader financial ecosystem.