Digital Asset Exchanges, 24/7 Trading and Collateral Tokenisation: Key Takeaways from the TOK26 Summit

On 29 January 2026, Katten sponsored the London Tokenisation Summit (TOK26) in London, bringing together leading voices in digital assets and tokenisation. Chris Collins, a partner in our London Financial Markets and Regulatory team, moderated a panel discussion titled "Digital Asset Exchanges, Next-Generation Settlement and Trade Automation, 24/7 Trading, Collateral Tokenisation". This article summarises some of the panel’s key discussion and talking points.

Bridging Digital and Traditional Markets

The panel opened with a discussion on how digital asset exchanges interact with traditional financial infrastructure. The panel discussed the fact that for digital asset exchange traded funds (ETFs) listed on traditional exchanges, the underlying assets are sourced from digital exchanges. This creates operational challenges, including unbonding periods for staked assets like Ether and the constraints of T+2 settlement cycles, which can limit staking capacity and force firms to hold back assets.

The panel also emphasised the importance of avoiding a binary view of the market, noting that both digital and traditional systems have valuable lessons to offer each other. The consensus was clear: the path forward lies in integration, rather than displacement.

The 24/7 Trading Question

A key theme was whether 24/7 trading is practical for institutional participants. It was highlighted that there are hidden costs, including the need for round-the-clock risk management and multiple trading teams, as well as fundamental questions around end-of-day valuations and accounting principles. Post-trade operations, including custodial monitoring and exception management, also require continuous human oversight, making 24/7 trading expensive to maintain at scale.

The panel agreed that while elements of continuous trading are beneficial, a selective approach is more realistic than universal adoption.

Collateral Tokenisation: Progress and Challenges

The panel provided an update on collateral tokenisation, noting that while proof-of-concept work has been completed, mainstream adoption remains limited. There is evidence that the technology is no longer in question, with the current focus shifting to legal certainty, title transfer, and operational processes.

Generally, while progress has been slower than anticipated, the industry is seen as being in "the last mile" of widespread adoption.

Looking Ahead

Panellists were optimistic about the year ahead. It was predicted that there will be continued growth in stablecoin adoption and improvements in capital efficiency across markets. In addition, traditional exchanges will increasingly support digital asset trading, with institutions recognising digital as an additional distribution channel rather than an all-or-nothing proposition.

It was also noted that regulatory crystallisation, particularly momentum from the United States, will be foundational. While significant intangible progress is expected this year, it was cautioned that full adoption will likely take two to five years. 

The TOK26 Summit reinforced that the industry is at an inflection point: the technology is proven, and the focus is now on building the legal, regulatory, and operational frameworks to support widespread adoption.