Tokenisation and continuous trading: Are markets approaching the inflection point?
At the recent EMEA Trading Conference 2026 in London, one topic stood out across discussions with exchanges, asset managers, and technology providers: tokenisation and continuous trading are moving from experimentation toward real market infrastructure.
For years, tokenisation has been surrounded by excitement but limited scale. Today, however, the conversation is shifting. Regulators are clarifying frameworks, financial institutions are launching concrete initiatives, and market participants are increasingly focused on practical use cases rather than theoretical potential.
The key question now is no longer whether tokenisation will play a role in capital markets, but how quickly it will reshape trading, liquidity, and market infrastructure.
Tokenisation: Still early, but momentum is building
Despite the level of attention it receives, tokenisation remains a relatively small market.
Today, roughly $330 billion of assets are tokenised globally, with the vast majority, around $300 billion represented by stablecoins, essentially digital cash moving on blockchain networks.
Tokenised financial assets such as treasuries, funds, commodities or equities account for only about $30 billion.
However, the last 12 months have seen a notable shift. Major institutions are now actively experimenting with tokenisation, including initiatives around:
- Tokenised securities
- Digital collateral management
- Extended trading hours
- Digital settlement infrastructure
This growing participation suggests the industry may be approaching an inflection point similar to other technological shifts in financial markets.
The real value of tokenization: Efficiency, not hype
Early discussions around tokenisation often suggested it could magically create liquidity or transform markets overnight.
The industry has now largely moved beyond that narrative.
Tokenisation does not automatically generate liquidity. Instead, its potential lies in improving the efficiency and flexibility of existing market processes, including:
- Faster settlement cycles
- Greater collateral mobility
- Reduced operational complexity
- Increased automation in post-trade workflows
- Potential access to markets outside traditional trading hours
For institutional market participants, these improvements can translate into lower costs, better capital efficiency, and improved trading performance.
Collateral mobility: One of the most promising use cases
One area generating significant interest is tokenized collateral and intraday liquidity management.
By representing securities or cash on digital networks, tokenization allows assets to move more quickly between counterparties. This could enable new market structures such as:
- Intraday repo markets
- Short-duration liquidity funding
- More efficient margin management
- Real-time collateral transfers
For trading firms, banks, and asset managers, this could unlock new opportunities to optimise balance sheets and manage liquidity more dynamically.
Continuous trading: Extending market access
Alongside tokenisation, the concept of continuous trading is gaining traction.
Some exchanges are already extending trading hours, and several market operators are exploring models that move toward near-continuous markets, such as 23-hour or even 24-hour trading cycles.
However, continuous trading is not simply a matter of extending exchange hours.
To function effectively, markets also require:
- Market surveillance
- Investor protection mechanisms
- Post-trade processing
- Corporate actions handling
- Regulatory reporting
Without these elements, round-the-clock trading cannot operate safely or efficiently at scale.
Liquidity remains the central challenge
A recurring theme throughout the conference was liquidity.
Liquidity cannot be created simply by introducing new technology. It requires:
- Active market participants
- Intermediaries such as brokers and market makers
- Connectivity across trading venues
- Standardised market infrastructure
Tokenisation also introduces the risk of fragmentation, with assets issued across multiple blockchains or platforms. If liquidity becomes fragmented across these environments, market efficiency could suffer.
This makes interoperability and connectivity critical priorities for the industry.
The importance of interoperability and standards
Financial markets operate through deeply interconnected systems — trading platforms, order management systems, clearing houses, and custodians.
Tokenisation adds new infrastructure layers that must integrate with this ecosystem.
Key requirements include:
- Standard messaging protocols
- Compatibility with existing trading workflows
- Integration with traditional OMS and EMS platforms
- Seamless interaction between blockchain networks and legacy infrastructure
In practice, the future will likely involve multiple tokenisation platforms and digital asset networks, making interoperability essential.
Regulation is unlocking institutional adoption
Regulatory clarity is another major factor shaping the future of tokenisation.
Across key regions, regulators are increasingly defining frameworks for digital assets and tokenised markets:
- In Europe, initiatives such as MiCA and the DLT Pilot Regime are providing structure for digital asset markets.
- In the United States, legislation around stablecoins and digital market infrastructure continues to evolve.
- Central banks are exploring digital currency initiatives and tokenised settlement systems.
Institutional investors require clear regulatory frameworks and trusted infrastructure before adopting new market models at scale.
What this means for trading technology
As tokenization and continuous trading evolve, trading technology will play a central role in enabling adoption.
Market participants will need systems capable of supporting:
- New asset types
- Extended trading hours
- Real-time risk management
- Automated workflows
- Integration between traditional and digital market infrastructure
In other words, the transition toward tokenized markets will not happen in isolation it will depend on flexible and resilient trading platforms capable of adapting to new market structures.
The road ahead
Tokenisation is unlikely to transform markets overnight. But the direction of travel is becoming clearer.
As regulatory frameworks mature, interoperability improves, and real use cases emerge, tokenisation may gradually become a core component of financial market infrastructure.
For trading firms and financial institutions, the key challenge will be preparing systems and workflows for a market environment that is becoming more automated, more connected, and potentially more continuous.
The next wave of market evolution is already underway.
Frequently Asked Questions
Approximately $330 billion of assets are tokenized globally, with around $300 billion represented by stablecoins (digital cash on blockchain networks). Tokenized financial assets such as treasuries, funds, commodities, and equities account for only about $30 billion.
Tokenization's primary value lies in improving efficiency and flexibility of existing market processes, including faster settlement cycles, greater collateral mobility, reduced operational complexity, and increased automation in post-trade workflows. For institutional participants, these improvements translate into lower costs, better capital efficiency, and improved trading performance.
By representing securities or cash on digital networks, tokenization allows assets to move more quickly between counterparties, enabling structures such as intraday repo markets, short-duration liquidity funding, and real-time collateral transfers. This helps trading firms, banks, and asset managers optimize balance sheets and manage liquidity more dynamically.
Continuous trading requires more than simply extending exchange hours — it also demands robust market surveillance, investor protection mechanisms, post-trade processing, corporate actions handling, and regulatory reporting. Additionally, liquidity fragmentation across multiple blockchains and platforms remains a central challenge that must be addressed through interoperability and standardized infrastructure.
In Europe, frameworks such as MiCA and the DLT Pilot Regime are providing regulatory structure for digital asset markets, while the United States continues to evolve legislation around stablecoins and digital market infrastructure. Central banks are also exploring digital currency initiatives and tokenized settlement systems, all of which are essential for institutional investors who require clear regulatory frameworks before adopting new market models at scale.
