Where is the action today?
Despite the major shifts in priorities noted earlier, the actual utilization of DLT and digital assets has remained remarkably steady over the last twelve months. Issuance and custody have been paramount, largely driven by some significant industry initiatives.
That’s about to change given the demand for liquidity and asset mobility. Collateral and financing are about to take the spotlight, pushing DLT deeper into the trade lifecycle and unlocking new value from digital assets.
The asset classes being prioritized reflect this shift, as they are widely used as collateral. But revenue is also playing a role, as different market segments focus on asset classes that will bring the highest returns.
1. Issuance and custody are the focus for up to 45% of banks in 2025
Can we get deeper into the trade cycle?
Actions taken by respondents in the last 12 Months
(% of respondents by segment)
To date, the action has remained firmly at the beginning of the trade cycle. Digital asset issuance has been a major focus for banks and market operators. The ongoing ECB trials which has brought big names into the issuance spotlight, broadening participation across 64 participants, spanning multiple currencies, and accelerating the flow of digital assets into institutional wallets.
Unsurprisingly, the ability to custody these new assets is another high priority. For the banks and wealth managers who can successfully and securely deliver the service, custody will be a steady revenue stream as 38% of banks and brokers can testify.
For investors, the priority for the majority over the past 12 months has been managed subscriptions into tokenized funds - a natural focus as the sector seeks ways to mobilize fund units and free up cash.
Further down the value chain – pledging, lending and financing – the action is relatively limited. But that’s about to change.
2. Financing looks set to lead the industry agenda in 2026
Post-trade takes the spotlight
Across all market segments, efforts to pledge tokenized assets as collateral is set to triple. Similarly, lending and financing activities see a sharp increase as issuance pulls back and custody stabilizes.
What’s driving this convergence? The need for intraday liquidity and the ability to mobilize and monetize assets. Whether the motivation is capital efficiency or asset optimization, pledging is the ecosystem’s sweet spot. And now that the interests of banks, investors and market operators are aligned, we can expect real change to take place.
Collateral and securities financing are two areas that could significantly benefit from atomic settlement and accurate ownership records that come with DLT and smart contracts. As noted earlier, intraday velocity will create substantial operational and capital benefits.
This is not to suggest that issuance and custody will pull back in 2026 - the same 38% of banks and brokers intend to provide custody of digital assets in 2026 as has been demonstrated in 2025. Post trade is indeed taking the spotlight.
Actions to be taken by respondents in the next 12 Months
(% of respondents by segment)
3. Post-trade takes the spotlight
Bonds, money market funds and stable-coins. Revenue is driving priorities
The focus on financing is clear in how asset classes are being prioritized. Favoured forms of collateral (bonds and cash equivalents) are expected to be actively used in live, daily operations. With trends clear and distinguishable across each sector of the industry.
Banks and brokers are really leaning into the potential bonds (52%) and stablecoins (55%) can bring as they seek ways to reduce the cost of risk and transform balance sheets and reduce RWA. Unsurprisingly, MMFs and Mutual funds are expected to be used by 25% investors as part of their daily operations. While FMIs expect bonds and equities.
Does this all sound familiar? The new ecosystem might not be too dissimilar to the existing.
Segmentation of asset classes aside, this data also evidences a keen interest in revenue. Essentially, each market segment is focusing on driving new product revenues, emphasizing the asset classes that will make them the most money.
The variance by market segment is further proof that the business case for DLT has firmly moved into the front office, where returns are emphasised over efficiencies and cost reduction.
Asset classes to be used in live, daily operations in 2025
(excl. POCs and pilots, % of respondents per segment)
4. Are industry initiatives really helping?
The age of experimentation may be drawing to a close
Only the ECB DLT trials stand out as making an impact
With the notable exception of the ECB trials, which drove major issuance volumes and demonstrated coordinated market leadership, fewer participants see these initiatives moving the needle in today’s market.
The evolution of DLT has been filled with industry pilots and PoCs, but the move of the business case to the front office represents a step-change.
This isn’t a bad outcome; rather, it represents the growth and maturity. Over the last six years of this survey, we’ve documented education, persuasion, and countless trials - these were the necessary stepping stones to get us where we are today.
Education and experimentation will always have a role, but it’s time to shift gears to production and performance - with real transactions in real time and with real impact. There is new urgency in the pace and adoption of DLT and digital assets.
And this is what makes the ECB trials so impactful. The cash, transactions, securities issuance and investor holdings exist within live capital markets and demonstrate actual business benefits. The ECB have helped to demonstrate the revenue potential of digital assets and DLT has now become impossible to ignore.
Expected impact of industry initiatives
(% of respondents scoring each 1-5, where 5 is maximum impact)
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