Deloitte Sounds Alarm: T+0 Settlement Could Unleash Market Chaos for Tokenized Assets

Faster trade settlement could either revolutionize markets or create a 'blind spot' for regulators—Deloitte's warning about tokenized assets reveals the high-stakes gamble Wall Street is making. The 2026 outlook from Deloitte identifies T+0 settlement (same-day trade settlement) as a critical theme for tokenized markets, but highlights significant risks in liquidity fragmentation and regulatory oversight.

Deloitte’s analysis points to a dangerous combination where faster settlement speeds collide with weaker visibility into market activity. 'The main tool the SEC has been using to enable tokenization... is the no-action letter,' the report states, signaling a reliance on informal regulatory tools in a rapidly evolving landscape.

This creates a scenario where tokenized and non-tokenized versions of the same asset may coexist, potentially leading to market fragmentation and liquidity concentration in crypto-native venues.

The CFTC is separately exploring stablecoins and tokenized collateral for intra-day liquidity needs, while the SEC’s Regulation NMS and Treasury central clearing changes are expected to reshape market infrastructure.

Deloitte warns that these shifts could exacerbate challenges in detecting manipulation, particularly as tokenized securities adoption hinges on resolving 'auditability' through compliance programs and surveillance.

Look, the tension between innovation and oversight isn’t new—but T+0 settlement introduces a unique pressure point. If regulators can’t keep pace with the speed of tokenized transactions, the result might be a system where market integrity is harder to enforce and liquidity risks are harder to predict.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.