The Tokenized Cash Management Advisory Group (TCMAG) has released a core framework for the use of digital money in corporate treasury, marking a shift from experimental pilots to institutional-grade cash management infrastructure.
Published on 21 April 2026, the principles are designed to ensure that tokenized cash solutions meet the regulatory, operational, and security standards required by multinational corporations working across multiple banks and technology providers.
Core principles for tokenized cash
TCMAG’s initial framework sets out twelve key requirements for developers of tokenized money products. Among the headline points:
- Full compliance with all relevant regulatory regimes
- Multi-bank and multi-issuer access
- Clear, auditable accounting treatment and transparency
- Seamless integration with existing enterprise resource planning (ERP) and treasury systems
- Enhanced cybersecurity and strong internal controls
- Interoperability across networks and platforms
- Confidentiality and data protection
- Functional parity with today’s tools such as cash pooling, netting, and liquidity sweeping
The framework also calls for continuous 24/7 operability, legal certainty over settlement finality, and robust handling of exceptions such as reversals, disputes, and operational errors.
TCMAG positions these requirements as essential for solutions that support live, global treasury operations rather than limited proof-of-concept projects.
Independent consortium targeting practical adoption
Formed as a neutral, independent consortium of treasury practitioners, TCMAG is chaired by Johal and is focused on the “practical first” adoption of tokenization in cash management.
The group’s stated objective is to embed real-world corporate treasury needs into the early design of tokenized money products. That includes controls, workflows, reporting, and risk management standards that align with how large corporate finance departments already operate.
Support for TCMAG’s work spans legal, banking, technology, and infrastructure providers, including A&O Shearman, AllUnity, Barclays, BitGo, Dfns, Digital Asset, Finmo, GLEIF, HSBC, Lloyds Bank, Partior, SAP, Swift, Ubyx, Zanders, and ZKsync. These firms cover tokenized payments, custody, data standards, and liquidity management.
Ongoing work with issuers and technology providers
TCMAG plans to refine and extend the framework in collaboration with issuers of tokenized deposits, stablecoin providers, wallet developers, and system vendors. As tokenized treasury infrastructure develops across markets, the group expects to issue further guidance.
The consortium’s neutral positioning is intended to align emerging digital money solutions with the operational standards, internal controls, and transparency expectations of corporate finance teams worldwide, rather than with the interests of any single provider or platform.
From blockchain experiments to institutional infrastructure
The framework underlines a broader shift in digital assets: away from technology-led experimentation and towards the risk-averse requirements of global corporations that manage trillions of dollars in assets.
The principles are less about what blockchains can do and more about what corporate treasurers will accept. They prioritize predictability, auditability, and compatibility with existing systems over novel features that may introduce new risks.
This move comes as the market for tokenized real-world assets is expected to scale rapidly. Some analysts project the market to reach nearly $19 trillion by 2033, up from more than $24 billion in early 2026. TCMAG’s principles effectively act as a blueprint for those aiming to capture a share of that projected growth by meeting corporate standards from the outset.
Regulatory direction and technology-neutral rules
For digital asset platforms and service providers, the framework’s emphasis on strict regulatory compliance aligns with a broader regulatory trend.
The U.S. Federal Deposit Insurance Corporation has clarified that deposit status is technology-neutral: a tokenized deposit is treated in the same way as a traditional bank deposit for regulatory purposes. That stance offers regulated institutions a clearer path to issue digital money products that can be designed in line with TCMAG’s principles.
With regulators increasingly focused on operational and consumer protection standards rather than the underlying technology, TCMAG’s framework signals the type of features and controls that will be expected to achieve acceptance in corporate environments.
Multi-bank access and the end of closed platforms
The insistence on multi-bank and multi-issuer access signals a challenging outlook for closed, proprietary platforms. Large corporations typically maintain relationships with multiple financial institutions for risk, pricing, and operational reasons.
TCMAG’s approach points toward value accruing to platforms and assets that can move seamlessly across networks and institutions, reducing the risk of new digital silos replacing old ones. Solutions that cannot interoperate, or that lock users into a single ecosystem, are likely to be less attractive to corporates under this framework.
24/7 operations reshape cash management
One of the most consequential operational requirements in the framework is continuous 24/7 functionality. This directly challenges the constraints of traditional banking hours and cut-off times.
Around-the-clock movement and management of cash can offer significant efficiency gains for globally active firms, especially those managing cross-border liquidity. Solutions able to deliver real-time settlement and reporting at any hour are expected to gain traction faster.
This shift is already visible in specific segments. Tokenized money market funds, which trade on a 24/7 basis, have grown to more than $7.4 billion in assets, highlighting demand for always-on liquidity products.
Yield, utility, and institutional demand
The broader tokenized assets market is showing a clear preference for instruments with yield and clear utility:
- Tokenized U.S. Treasuries have surpassed $10 billion in value
- On-chain private credit exceeds $18 billion
This concentration in income-generating assets is drawing in significant institutional capital. By 2024, institutional entities held nearly 70% of the tokenized asset market. Surveys indicate that these entities are expected to allocate around 5.6% of their portfolios to tokenized assets during 2026.
For traders active in digital asset markets, TCMAG’s framework reinforces that the next phase of growth is likely to be driven not by speculative innovation, but by products that meet strict regulatory, operational, and risk criteria. The group’s standards signal where capital is most likely to flow as tokenized finance continues to scale.
Curious how tokenized assets reshape finance? Explore Toobit’s guide on tokenized equities and how they work for deeper insight.
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