Turnover in tokenised short-dated government debt has climbed steadily on regulated Asian venues this year, according to figures shared with this newsroom by three exchange operators.
The products appeal to trading firms that want collateral which earns a yield overnight without leaving the venue's settlement perimeter. Several prime brokers now accept the tokens as margin at a modest haircut.
Regulators in both jurisdictions have kept distribution restricted to accredited and institutional investors, and issuers must publish daily holdings alongside a named administrator.
The main operational complaint is redemption timing. Tokens trade continuously, but the underlying fund settles on a banking calendar, and that mismatch has produced brief discounts during regional holidays.
Exchange executives expect the next phase to involve repo-style borrowing against the tokens, which would deepen liquidity but also introduce leverage into a product currently marketed on its safety.
