- Paul Atkins says tokenization and blockchain will modernize U.S. financial infrastructure and reduce systemic risks.
- On-chain settlement can accelerate processing from T+1 to T0, improving transparency and market efficiency.
- Major banks and brokers increasingly adopt tokenization, positioning the U.S. as a leader in global digital finance.
U.S. markets are moving toward on-chain settlement and digital assets, SEC Chair Paul Atkins stated. Speaking recently, Atkins emphasized that tokenization and blockchain-based systems will modernize the financial infrastructure, reduce systemic risks and keep the U.S. competitive globally. His remarks underline the growing role of Bitcoin and crypto rails in the evolution of American finance.
Tokenization Offers Faster, Transparent Settlements
Atkins explained that tokenization uses smart contracts or tokens to represent underlying securities, keeping them subject to SEC rules. This approach improves transparency by tracking ownership more clearly than traditional systems.
The process also enables near-instant settlement, potentially moving from T+1 to T0, depending on instruments. Such on-chain delivery-versus-payment models aim to reduce market risks and enhance clearance efficiency.
Institutional Adoption and Market Modernization
The SEC Chair noted that major banks and brokers are increasingly adopting tokenization for securities and assets. He highlighted that blockchain integration can streamline market operations while maintaining compliance.
Atkins also referenced historical challenges where the SEC lagged behind innovations, emphasizing that the agency now actively embraces digital asset developments. His comments position the United States as a frontrunner in global financial modernization.
Crypto Regulation and Global Context
Atkins clarified that only a few countries, notably China and the U.S., had previously considered restricting cryptocurrencies. He stressed that the regulatory approach is now shifting to support technological adoption.
The SEC intends to balance oversight with innovation, ensuring tokenized securities and on-chain settlements integrate safely into existing financial frameworks. This reflects a structural evolution of U.S. markets toward digital asset infrastructure.
Atkins’ remarks signal a new regulatory and operational era, where tokenized securities and blockchain-based systems form the backbone of U.S. financial markets. His statements indicate ongoing efforts to modernize settlement, enhance transparency, and maintain global leadership.
