Across each evolution of global capital markets, trust has been the cornerstone upon which efficient and robust capital markets rest. Regulatory frameworks play an essential role in maintaining this trust, setting clear, consistent rules that protect stakeholders and meet the objectives of policymakers worldwide. Effective regulation balances growth and innovation with market integrity, consumer protection, systemic stability, and overall safety.

The emergence and rapid maturation of distributed ledger technology (“DLT”) and digital assets are driving a transformational shift in capital markets – demanding proactive collaboration from market participants and regulators to ensure these assets and their infrastructure build on the existing protections of traditional financial instruments.

This report provides a comprehensive analysis of the practical applications, opportunities, and challenges posed by DLT and tokenization in global capital markets. It evaluates the implications of digital securities across the entire securities lifecycle, offering insights into at-scale use cases such as collateral management, fixed-income issuance, and fund tokenization. The analysis further addresses critical operational risks, such as cybersecurity, smart contract reliability, and settlement finality, and outlines clear risk mitigation strategies, affirming that institutional-grade risk management frameworks are both robust and adaptable to these innovations.