Major Wall Street institutions are moving to tokenize equities on blockchain rails, driven by the promise of near-instant settlement, reduced fails, and programmable collateral management. The race involves both established custodians and fintech platforms seeking to replicate the success of tokenized T-Bill products, which have already attracted tens of billions in assets. The potential market dwarfs existing tokenized bond activity given the scale of global equity markets.
For Armada's crypto repo desk, this trend is directly relevant: if tokenized equities gain traction as repo collateral alongside tokenized T-Bills already in scope, the desk must develop valuation, LTV, and custody standards ahead of counterparty demand. Fireblocks already supports tokenized asset custody, so the infrastructure question is partly answered, but internal collateral policy and haircut frameworks for tokenized equities would need to be built from scratch.