The Swap Tokenization in Derivatives Markets
Feb 23, 2026
Joe Spiro, DTCC digital assets product director focused on tokenization infrastructure and interoperability. Sandy Kaul, Franklin Templeton innovation lead working on tokenized funds and on-chain collateral pilots. They discuss tokenization fundamentals, barriers like wallets and regulation, tokenized collateral and repo use cases, standards and multi-chain interoperability, and a realistic multi-year adoption timeline.
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Tokenization Embeds Contracts With Assets
- Tokenization embeds contracts into assets so the asset and contract move together on a shared ledger.[-] This removes multiple reconciliations across counterparties and enables near-instantaneous asset and payment settlement on the same rails.
Program Compliance And Collateral Rules Into Tokens
- Design tokenized systems to be interoperable and program rules into tokens to handle compliance, corporate actions and collateral terms.[-] Use smart contract programmability to automate eligibility, haircuts, transfers and dividend flows on-chain.
Franklin Templeton Ran A 24/7 Tokenized Money Market Fund
- Franklin Templeton ran a tokenized money market fund 24/7 on blockchain and used it as collateral in crypto derivative exchanges.[-] They replaced stablecoins with the tokenized fund, preserving yield and moving collateral continuously for over a year.