Tokenised Collateral Breaks Into Mainstream: Coinbase UK CEO Reveals Market Shift

Forget the hype—the plumbing is getting replaced. Tokenised collateral, once a niche concept whispered in crypto circles, is now marching onto the main stage of global finance. The shift isn't coming; it's already happening.

From Theoretical to Tangible

Digital assets are no longer just speculative bets. They're becoming the foundational layer for a new kind of financial infrastructure. By representing real-world assets like bonds or commodities on a blockchain, institutions can move value instantly, slash settlement times from days to seconds, and unlock capital trapped in legacy systems. It's a direct challenge to the slow, expensive machinery of traditional finance.

The Efficiency Engine

Why does this matter? Because it cuts costs and complexity at the source. Smart contracts automate compliance and execution, bypassing layers of intermediaries. This isn't just an upgrade—it's a fundamental rewiring of how collateral is managed, traded, and leveraged across borders. The promise is a more transparent, liquid, and accessible financial system.

The Mainstream Inflection Point

The real signal isn't the technology itself, but who's adopting it. When major financial players start integrating tokenised assets into their daily operations, the experiment phase ends. We're witnessing the early, practical steps toward an internet-native financial system where value flows as freely as information.

Of course, Wall Street has a long history of embracing innovations that primarily make its own operations cheaper—whether that trickles down to the rest of us remains to be seen. One thing's clear: the race to rebuild finance with digital assets is officially on, and the starting gun has already fired.

From Pilots to Production

“When central banks start talking about tokenised collateral, it’s a sign this technology has moved beyond crypto and into CORE market infrastructure,” Grose said.

He pointed to new data from Coinbase, showing that 62% of institutions have either held or increased their crypto exposure since October, despite periods of market volatility.

According to Grose, this sustained institutional presence reflects a shift in priorities. Rather than speculative exposure, firms are increasingly focused on operational tools that allow them to deploy digital assets at scale within existing risk frameworks.

Demand for Institutional-Grade Infrastructure

Coinbase said it is seeing growing institutional demand for services such as custody, derivatives and stablecoins, which Grose said are essential for managing risk and supporting day-to-day financial activity. “That tells us the market is building for real-world use,” he said.

He added that tokenised assets and stablecoins are expected to MOVE from being conceptual possibilities to becoming everyday instruments for liquidity and collateral management. This transition, Grose said, will define the next phase of market development through 2026 as infrastructure matures and regulatory clarity improves.

The Role of UK Regulation

Grose highlighted the importance of the UK regulatory environment in unlocking further capital allocation into tokenised markets. While the UK has made progress in developing a framework for digital assets, he said policy choices around stablecoins will be critical to sustaining momentum.

“In the UK, to grow tokenisation we need no limits or blocking of stablecoin rewards,” Grose said. He argued that allowing investors to keep funds circulating within the digital economy WOULD help unlock a genuinely liquid, 24/7 tokenised marketplace.

As institutions move from testing to deploying tokenised collateral in live market environments, Grose expects adoption to accelerate across custody, derivatives and stablecoin-based settlement.

With central banks increasingly engaged and institutional exposure holding firm, tokenisation is positioning itself as a foundational LAYER of modern financial infrastructure rather than a niche crypto application.

What Is Tokenisation and Why It Matters

Tokenisation is the process of representing a real-world asset on a blockchain. Tokens can stand for a wide range of assets both financial and non-financial, including cash, gold, stocks and bonds, royalties, art, real estate and other forms of value.

In practice, anything that can be reliably tracked and recorded can be tokenised, with the blockchain acting as a shared ledger that records ownership and transfers in a transparent and verifiable way.

As tokenisation continues to develop, its implications for markets, infrastructure and risk management are becoming clearer, prompting further research and analysis into how on-chain assets can reshape financial systems.