U.S. Banks See ‘Slow-Then-Fast’ Shift to Tokenized Assets

A Moody’s Ratings sector report says major U.S. banks and market intermediaries expect a gradual, then rapid, transition to tokenized assets and digital money as the Depository Trust & Clearing Corporation prepares limited production trades of tokenized securities in July 2026. The report was published in May 2026 and cites conversations with industry participants and public disclosures.

Current tokenized activity in the United States is concentrated in stablecoins, tokenized deposits and tokenized money market funds. Moody’s estimates tokenized money market funds have roughly $10 billion outstanding in 2026. Most transaction volume remains tied to cryptocurrency trading and specific institutional uses rather than broad retail or corporate payments.

Reasons for limited broader use include continued reliance on traditional payment methods and low priority for payment upgrades among corporate treasuries, which are more focused on investments in artificial intelligence. Market participants in the report indicate that payments alone are not expected to drive wide adoption. Greater demand is seen as more likely if tokenized versions of mainstream financial assets or automated, programmable commerce become common, because those use cases require onchain settlement for instant and programmable transactions.

U.S. banks described tokenized deposits as an extension of the existing deposit model. The report records wariness about privately issued stablecoins, which banks view as potential competitive threats from nonbank and technology firms that could operate outside traditional regulatory and funding frameworks.

Regulatory and market infrastructure steps are under way. In late 2025 the Securities and Exchange Commission provided no-action relief to pilot tokenization of certain assets held at the Depository Trust Company. On May 4, 2026, the DTCC said it would facilitate limited production trades of tokenized securities in July 2026, with a full-service launch currently planned for October 2026. The planned rollout follows a hybrid model in which traditional and tokenized systems run in parallel while processes and technology are updated.

Moody’s identifies key obstacles to scaling tokenization: legal clarity on ownership rights, definitive rules for settlement finality, and proven technology that integrates with existing systems. Converting custody, clearing and settlement to work with distributed ledger technology will require substantial restructuring of market processes.

The report quotes industry insiders saying, “once key building blocks (legal and regulatory clarity, proven and integrated technology and investor buy-in) fall into place, adoption could shift into a much higher gear.” Moody’s notes that incumbents are investing now to prepare for a phased adoption cycle that could accelerate if technical, legal and investor conditions align.

The report does not forecast specific timing for broad adoption beyond the DTCC milestones. It documents current uses, identifies hurdles that remain, and records the industry view that a hybrid operating model is likely to persist for a decade or more while markets update systems and practices.