# Up to 77% of Institutions Expect Tokenized Collateral Use in 2026

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/24491
Published: 2026-09-26T23:42:36.000Z
Updated: 2026-09-26T23:42:36.000Z
Section: Business

> Tokenized cash, money-market funds and government bonds are moving toward broader institutional use as collateral managers seek faster, more flexible settlement.

As many as 77% of institutions expect to use tokenized collateral in 2026, a shift that could make cash, money-market funds and government bonds easier to move across markets and settlement windows.

About 5% of repurchase agreement volume is already traded in tokenized form each month. U.S. Treasurys are expected to become available in tokenized form through DTCC in October 2026.

Global systemically important banks deploy an average of $74 billion in collateral each day across roughly 65 custody locations. Settlement windows and operational frictions leave about 25% of that collateral idle, generating little or no income.

For an average Tier 1 institution, those idle assets represent about $15 billion and a potential annual income loss of $346 million.

Tokenization can allow collateral to move more easily across time zones and outside traditional banking hours. That supports margin management closer to a 24-hour, seven-day operating model.

The expected expansion includes tokenized cash, money-market funds and government bonds, with U.S. Treasurys expected to become available in tokenized form through DTCC in October 2026.