An American Banker op-ed argues that regulatory inaction by US bodies is accelerating the migration of tokenized asset infrastructure to jurisdictions with clearer frameworks, including the EU, UK, and Singapore. The piece contends that without timely guidance on settlement finality, custody, and securities classification, critical market infrastructure will be built and governed abroad, making it harder for US firms to participate on favorable terms.
For Armada's crypto desk, this is directly relevant to tokenized T-Bill collateral. If the primary venues and legal wrappers for tokenized Treasuries migrate offshore, enforceability of repo agreements under US law becomes uncertain. The traditional desk should also monitor whether primary dealer counterparties begin routing tokenized collateral through non-US platforms.