On 11 November 2025, the International Organization of Securities Commissions (IOSCO) published a Final Report on the Tokenisation of Financial Assets.

The purpose of the Final Report is to build a shared understanding among IOSCO members of how tokenisation is being adopted across capital markets and how regulators are responding. It examines potential implications for market integrity and investor protection to guide IOSCO members in shaping effective regulatory responses.

The Final Report makes certain observations including:

  • Several tokenized products have been issued in select jurisdictions, in compliance with regulatory frameworks and with increasing investment amounts.
  • At present, tokenization arrangements remain a small part of the financial sector. While there is some evidence of broader investor access, many of the promised benefits — particularly concerning secondary market liquidity — appear not to be fully achieved for now.
  • The impact of tokenization on lifecycle activities varies depending on the implementation model and the degree of integration with distributed ledger technology (DLT). For example, in clearing and settlement activities, IOSCO observed that while DLT-based settlement infrastructure enables faster settlement times, it appears that market participants continue to favour the use of traditional settlement infrastructure.
  • While tokenized money market funds (MMFs) may be issued on public blockchains, secondary trading of tokenized MMFs is limited and restricted to whitelisted investors.
  • The key structural challenges faced in scaling up of tokenization are the lack of interoperability across blockchains and the lack of high-quality settlement assets.
  • Whilst relevant regulatory authorities are able to identify responsible persons for the various roles in the value chain and impose the necessary regulatory requirements, IOSCO members may consider IOSCO’s Recommendations for Decentralized Finance in identifying the persons and entities who are responsible for the regulated activities in the tokenization value chain.