Digital assets are moving toward becoming core infrastructure in global capital markets, according to LMAX Group CEO David Mercer, who pointed to rapid growth in tokenization and stablecoins as key drivers of change.
Speaking on the Big Brain Podcast, Mercer said developments such as tokenized securities, mobile collateral, and round-the-clock digital trading are reshaping how markets operate by enabling real-time settlement and broader access to capital.
Tokenization and 24/7 markets reshape operations
Mercer compared the rise of tokenization to the expansion of derivatives decades ago, arguing it could similarly increase liquidity and improve risk management. He noted that blockchain-based systems allow markets to function continuously without relying on traditional clearing infrastructure, offering greater flexibility for institutional participants.
The discussion highlighted how different financial systems, including equities and foreign exchange, may evolve to support always-on trading environments powered by blockchain networks.
Stablecoins become key settlement layer
Stablecoins are emerging as a central component of this transformation, acting as liquid, programmable assets for settlement. Their market capitalization has surpassed $321 billion, with annual transaction volume reaching $33 trillion in 2025, underscoring their growing role beyond simple trading tools.
At the same time, regulatory frameworks are taking shape. The European Union’s MiCA rules are now fully enforceable, while the U.S. GENIUS Act has introduced requirements such as full reserve backing and regulatory oversight for stablecoin issuers.
Institutional adoption gains momentum
Mercer pointed to increasing activity from major financial institutions adopting blockchain-based systems for digital collateral and tokenized assets. Projects like BlackRock’s tokenized Treasury fund and JPMorgan’s blockchain platform signal a shift from experimentation to implementation.
Traditional market operators are also testing integration. Organizations such as the NYSE and DTCC are running pilot programs to bring tokenized securities into existing financial infrastructure, aiming to reduce friction between legacy systems and new technology.
Credit markets and new digital layers emerge
The interview also explored how credit markets, perpetual products, and prediction markets are forming new layers of digital infrastructure that connect traditional banking with token-based systems. Mercer noted that these developments are building a more interconnected financial ecosystem.
Asset classes with clearer regulatory treatment, particularly government securities and money market funds, are currently leading tokenization adoption, accounting for a significant share of the market.
Outlook shaped by regulation and standards
The broader direction of digital assets will depend on regulatory clarity, technical standardization, and cross-market integration. While large-scale transformation may still take time, the shift toward tokenized finance is accelerating.
Mercer’s comments reflect a wider industry view that digital assets are no longer experimental but are increasingly embedded in the global financial system’s foundation.
Explore how tokenized equities are reshaping markets and deepening liquidity across global digital asset infrastructure.
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