A new IOSCO report highlights a persistent misconception in digital asset discussions: tokenization is still often treated as a digitization exercise, when the deeper shift is in market structure. The real challenge isn’t creating digital representations of assets — it’s aligning identity, settlement, and compliance on a shared, programmable infrastructure.
1. Digital Assets require digital cash. Tokenized instruments remain tied to legacy payment rails unless paired with instant, on-chain stablecoin settlement.
2. Identity is becoming the primary control layer. Programmable compliance and identity-based transfer rules are proving more adaptable than fully closed, permissioned networks.
3. Composability reduces friction. Unbundling issuance, settlement, and custody enables interoperable workflows, lowers operational risk, and improves transparency.