The $13 trillion repo market is seeing rapid adoption of tokenization, with major financial institutions like JPMorgan Chase processing hundreds of billions of dollars in repo transactions daily on blockchain platforms. By tokenizing cash and collateral, these firms can achieve faster, more flexible transfers, enhancing liquidity and risk management in an essential but traditionally overlooked sector of finance.

Agentic artificial intelligence is expected to be a pivotal technology this year for post-trade operations as financial institutions face operational pressures from increased volumes and limited budgets, says Kaja Zupanc, head of AI at Duco. "This is comparable to earlier waves of automation," Zupanc says. "But what's different this time is the maturity of the technology and the immediate need to manage operational pressures."

Quantum computing is emerging as a significant technological frontier, with the potential to revolutionize sectors such as finance, healthcare and materials science. Unlike AI, which excels at pattern recognition, quantum computers can explore multiple solutions simultaneously, posing a threat to global encryption systems. While the technology is not yet commercially viable due to technical challenges such as qubit stability, governments worldwide are investing heavily in quantum research to secure a strategic advantage.

A white paper from DTCC and Finadium highlights the importance of collateral mobility in the capital markets as tokenization becomes more prevalent. The paper argues that the ability to move collateral quickly and safely across fragmented systems is crucial for improving liquidity and capital efficiency.

The Securities and Exchange Commission is reportedly expected to unveil an "innovation exemption" that could allow trading of tokenized versions of public stocks on crypto platforms, including some issued by third parties without company consent. The proposal would mark a major shift in US market structure by enabling blockchain-based securities that may lack traditional shareholder rights while raising concerns about fragmentation, transparency and investor protections.

The Financial Conduct Authority and Bank of England have released a shared vision for tokenization in wholesale markets, aiming to provide regulatory clarity and support industry adoption. The initiative, which includes a consultation on extended settlement hours and updated guidance on prudential treatment, seeks to enhance market efficiency and resilience.

President Donald Trump signed an executive order directing the Federal Reserve and other regulators to review policies governing access to payment rails, including master accounts used to move funds through the Fed system. The move asks policymakers to assess whether changes could expand access for fintech and crypto firms as part of a broader push to support financial innovation.