Collateral inefficiency is too expensive to ignore. As firms manage larger pools of collateral under tighter liquidity constraints, tokenisation is a practical way to reduce friction and unlock value. 

How much capital is currently trapped by precautionary buffers, settlement uncertainty and underused collateral? What would change if firms could move collateral more efficiently, reduce operating drag and improve earnings at scale?

The whitepaper examines the operational, financial and strategic case for tokenised collateral. It draws on market evidence around current inefficiencies, expected savings and the conditions needed for broader adoption across the collateral lifecycle.

The research, produced in partnership with Nasdaq, highlights:

• The average firm manages US dollar (USD) 74 billion in collateral, illustrating the scale of assets exposed to inefficient processes and restricted mobility

• 25% of collateral remains unremunerated overnight or is posted as additional buffer, creating avoidable drag on treasury performance

• Tokenisation could reduce operating costs by 12%, lower buffer capital needs by 12% and improve collateral utilisation by 3.2%

• The opportunity is estimated at USD 346 million for Tier 1 firms, USD 190 million for Tier 2 firms and USD 7.7 million for Tier 3 firms

• Adoption depends on market readiness: legal certainty, regulatory clarity, technology infrastructure and ecosystem coordination will shape how quickly firms can move from interest to implementation