The FIX Trading Community has called for greater standardisation of tokenised assets, saying inconsistent data, workflows and market practices could slow wider adoption.

The industry association made the comments in its response to a joint consultation by the Financial Conduct Authority and the Bank of England on the future of tokenisation in UK wholesale markets.

That concern comes as financial firms and market operators continue to test tokenised securities and related infrastructure. Robinhood has launched more than 200 tokenised stocks for European customers, while eToro has announced plans to tokenise US-listed equities, initially targeting 100 of its most popular stocks. eToro CEO Yoni Assia described the move as part of the company’s “journey towards a tokenized future.”

The developments extend beyond retail brokers. CMC Markets recently tested a tokenised share transaction in the UK. Murex and Quant have worked on integrating digital assets into existing workflows, while SBI Holdings and Startale have been testing settlement and interoperability. The World Federation of Exchanges has also raised questions around ownership, custody and market integrity.

FIX Flags Global Tokenisation Standards Gap

Although the consultation focuses on the UK, FIX said the issue extends across global markets. Its Digital Asset & Technology Committee includes market operators, sell-side and buy-side firms, and technology vendors from different jurisdictions.

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Jim Kaye, Executive Director at FIX, said the main barrier to wider adoption of tokenisation was not the technology, but gaps in data standards, reconciliation and market processes.

“The business cases for tokenisation are both compelling and well advanced,” Kaye said, particularly in post-trade and collateral management. However, the “lack of common data standards” could continue to hamper adoption.

Key Hurdles Remain for Tokenisation

FIX identified several areas requiring further work. These include chain-to-chain connectivity Connectivity Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Read this Term, common instrument identifiers and links between exchanges, custodians and digital asset platforms. It also said there are no agreed standards for digital asset settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term instructions.

Other gaps include wallet addressing, mapping wallet addresses to legal entities, and a common taxonomy for corporate actions, coupon payments and other asset servicing events.

Data encryption is another concern. FIX said there is no agreed encryption standard for digital asset transactions, creating a potential risk of exposing customer and other sensitive information.

Framework Requires Industry-Regulator Cooperation

FIX has published guidance on using its protocol for tokenised assets and released Recommended Practices for Digital Asset Trading in 2022. Its current work focuses on supporting a hybrid market where traditional and tokenised infrastructure operate alongside each other.

Kaye said the framework would require input from both market participants and regulators to limit regulatory arbitrage. “Collaboration on this issue is absolutely fundamental,” he said.