Need for interoperability in tokenized securities
Leading financial market infrastructure companies such as DTCC, Euroclear, and Clearstream have warned of the risks that tokenized securities may face without proper interoperability between distributed ledger technology (DLT) networks and traditional financial systems.
According to the experts, the principle of 'same asset, same rights, same outcome' must apply across both DLT-based networks and traditional finance platforms. Without ensuring such interoperability, tokenized securities could face higher costs and fragmented liquidity.
The infrastructure providers emphasize that the lack of compatibility between blockchain systems and traditional finance platforms will lead to market segmentation, which will complicate operations with tokenized assets and reduce their liquidity.
Importance of standardization and harmonization
To ensure the efficient functioning of the tokenized securities market, standardization of processes and harmonization of actions among all ecosystem participants - issuers, trading platforms, central depositories, and infrastructure providers - is necessary. Only under these conditions can the stated goal of increasing transparency, efficiency, and accessibility of securities transactions in digital format be achieved.
According to experts, the key element for implementing interoperability will be the development of agreed industry standards that will allow integrating blockchain systems with traditional financial infrastructure. This, in turn, will pave the way for wider adoption and acceptance of tokenized securities.