Press Enter to search · ESC to close

RWA Crypto

Instant Settlement for Tokenized Stocks Still Depends on Custody and Bank Conversion

Tokenized stocks can now settle atomically with their payment leg, but custody arrangements and conversion into bank dollars remain separate steps in the process. A stock token and its cash payment can change hands together on-chain, yet the underlying shares still sit with a custodian and the cash must still be converted into fiat before it reaches a bank account.

Original source

AI take

The real constraint on tokenized equities is not the on-chain leg but the off-chain plumbing around it. Atomic settlement solves delivery-versus-payment at the token layer, yet the promise of instant finality ends where custody and bank conversion begin, leaving the overall process with the same latency it had before. That gap matters most for market makers and settlement desks expecting tokenization to compress their operational cycle. Whether custody and fiat conversion get pulled into the same atomic flow, rather than sitting beside it, is the open question.

Generated by AI for reference only.

Share

Related News

TREE NEWS share card
Long-press image above → Save to Photos / Share
Pitch us Feedback