As financial markets approach a new phase of digital infrastructure, Deloitte argues that tokenized securities will face a decisive test once same-day settlement moves from theory to live pilots.
Deloitte flags T+0 settlement as a 2026 turning point
In its 2026 outlook report, Deloitte warns that the financial industry’s shift toward same-day settlement and blockchain-based instruments could reshape market plumbing, but also amplify risk if not carefully managed. The firm links its assessment to ongoing U.S. regulatory debates and market structure reforms.
The report highlights T+0 settlement as a key development for 2026. Under this model, trades settle on the same day they are executed, compressing post-trade timelines that currently allow more time to identify errors, mobilize cash, or source securities. However, the firm stresses that most early deployments will likely be limited in scope.
Roy Ben-Hur, managing director at Deloitte & Touche LLP, and Meghan Burns, manager at the firm, told CryptoSlate that a wholesale market overhaul is unlikely in the near term. Instead, they expect targeted pilot projects and contained experiments to lead the way.
“Signals point towards initial market experimentation via pilots rather than a full market shift,” the executives stated. Moreover, they argue that this measured approach will give regulators and market participants room to test controls before scaling.
How tokenized securities and faster settlement reshape risk
According to the report, tokenized securities refer to traditional instruments such as bonds or stocks that are represented in digital form and transferable on blockchain infrastructure. This architecture promises fewer intermediaries, faster movement of assets and cash, and improved record-keeping.
However, Deloitte cautions that accelerated settlement compresses the time window to correct trade errors, source liquidity, locate securities, or manage margin calls. While faster settlement can reduce counterparty exposure, it also concentrates operational and funding risk into a much shorter period.
The report notes that pairing same-day settlement with reduced reporting obligations could create oversight blind spots. That said, Deloitte believes robust compliance audit trail requirements can offset some of these risks if implemented from the outset rather than retrofitted later.
Regulatory initiatives and 2026 market structure changes
Deloitte links these developments to broader U.S. market structure changes expected by 2026. The firm points to the anticipated conclusion of the cash portion of the U.S. Treasury central clearing initiative and expected Securities and Exchange Commission proposals to amend Regulation NMS as catalysts for experimentation with blockchain-based tools.
Moreover, the report notes that regulators are signaling a greater willingness to streamline rules and create formal pathways for blockchain products, including digital representations of securities and stablecoins. These pathways are emerging even as regulators remain cautious about systemic risk.
Deloitte observes that the SEC has largely relied on no-action letters and staff guidance to enable tokenization pilots. No-action letters let firms pursue new market practices without full rulemaking, provided they operate within specific parameters and maintain strong control frameworks.
“In this context, it is a powerful tool to quickly enable changes in industry practice or available marketplace offerings, and we are seeing this already with approvals the SEC has granted recently,” Ben-Hur and Burns stated. However, the firm warns that reliance on targeted relief does not eliminate the need for robust supervision.
Tokenized collateral and stablecoins as early use cases
The report identifies collateral workflows as one of the earliest and most practical environments for tokenized assets. Ben-Hur and Burns point out that the Commodity Futures Trading Commission is examining stablecoins and tokenized collateral for use cases that benefit from instant settlement in liquid, dollar-linked instruments.
“The intra-day nature of collateral commitments makes it an attractive use case for an asset with these features and liquidity commitments. Custody and clearing will help it to scale,” the executives stated. This suggests that collateral processes could become a proving ground for tokenization at scale.
Moreover, Deloitte expects experiments with tokenized collateral workflows to shed light on how digital assets can support real-time risk management and margining. The firm adds that early stablecoin pilots may influence how other fixed-income and equity products are eventually tokenized.
According to Deloitte, these focused trials will help determine whether the operational gains from blockchain-based collateral can be replicated in more complex cash and derivatives markets. However, the firm stresses that technology alone will not solve underlying governance and data challenges.
Coexistence of tokenized and traditional assets
As same-day settlement pilots expand, Deloitte expects a transition period in which tokenized and non-tokenized versions of the same underlying asset coexist. This dual structure could complicate pricing, liquidity allocation, and order routing across venues.
The firm warns that the coexistence phase may heighten market liquidity fragmentation risks if trading interest disperses across multiple platforms. Moreover, routing algorithms and best execution policies will have to adapt to instruments that share fundamentals but differ in technological rails.
Deloitte’s report notes that faster settlement could enable new market entrants and increased competition. However, the proliferation of trading and execution venues could make it harder for regulators and participants to monitor aggregate liquidity and risk concentrations.
In this environment, the question of what are tokenized securities becomes not just definitional but operational, as market participants must determine how these digital representations interact with existing post-trade and custody frameworks.
Reporting, transparency, and oversight pressures
A core concern in Deloitte’s outlook is the interaction between accelerated settlement and efforts to trim reporting obligations. The firm warns that initiatives aimed at reducing reporting burdens could increase market opacity at precisely the moment when visibility is most needed.
According to the report, the compressed settlement window leaves less time to detect manipulation, reconcile position discrepancies, or respond to sudden market stress. Moreover, if reporting lags behind transaction speed, supervisors may be forced to operate with incomplete or outdated information.
Deloitte therefore recommends that firms adopt streamlined but robust reporting processes that preserve auditability even as settlement cycles shorten. The firm stresses that documentation standards, surveillance systems, and cyber defenses must keep pace with the speed and complexity of digital operations.
Ben-Hur and Burns emphasize that compliance programs, supervision, and detailed audit trails become more critical as settlement systems move toward T+0. However, they also argue that well-designed controls can coexist with efficiency gains when embedded directly into digital workflows.
Testing whether tokenization becomes core infrastructure
For Deloitte, 2026 represents a proving ground for whether tokenized architectures can genuinely improve settlement and collateral processes while preserving transparency and stability. The firm anticipates that regulators will closely monitor early pilots before deciding on broader adoption.
Moreover, Deloitte suggests that the outcome of these initiatives will determine whether tokenized securities become integrated into core market infrastructure or remain confined to niche applications. The performance of pilots in stress conditions will likely be a decisive factor.
The report concludes that faster settlement and digital assets could deliver meaningful benefits, including reduced counterparty risk and more efficient collateral utilization. However, those benefits will only be realized if market participants pair technological innovation with rigorous governance, strong risk management, and resilient operational frameworks.
In summary, Deloitte frames the coming years as a make-or-break phase for tokenization and same-day settlement, arguing that the industry’s ability to balance speed with transparency will shape the future architecture of global capital markets.
Source: https://en.cryptonomist.ch/2026/01/26/tokenized-securities-2026-test/
