Tokenization has often been presented through the language of speculation. Its more durable future may be far less theatrical: faster settlement, programmable ownership, and financial infrastructure that can operate with fewer reconciliations.
A new settlement layer
The Bank for International Settlements has placed tokenization at the centre of its discussion about the next-generation monetary system. The attraction is practical. Assets and money can share a common programmable environment, reducing the delays and mismatches created when records move across separate ledgers.
Institutions are now testing tokenized deposits, government securities, funds, and collateral. The important question is no longer whether an asset can be represented on a ledger. It is whether governance, identity, liquidity, and central-bank money can work together safely at scale.
Infrastructure before spectacle
For businesses, the near-term opportunity lies in treasury, cross-border settlement, collateral mobility, and transparent ownership records. Progress will depend on regulation and interoperability, not novelty alone.
The winning systems are likely to feel almost invisible to the end user. Their value will be measured in reduced friction, better access, and confidence that the financial rails can support real economic activity.
Image credit: Original photograph via Unsplash.
References: BIS Annual Economic Report 2026, Tokenisation; IMF, Tokenized Finance and Money.
