Tokenization, the representation of assets and liabilities on programmable distributed ledgers, has the potential to transform financial markets by streamlining the asset life cycle, reducing frictions, and improving transparency. Yet tokenized markets remain small and fragmented, and their growth depends on legal certainty, regulatory clarity, interoperability, and the availability of settlement assets. Policymakers should adopt a technology-neutral approach that removes unnecessary barriers while safeguarding financial stability.
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