SmarterMarkets™ Re-engineering Tokenization Episode 10 | Walt Lukken, President & CEO, FIA
Dec 20, 2025
Walt Lukken, President & CEO of the FIA and former Acting Chairman of the U.S. Commodity Futures Trading Commission, dives into the exciting world of tokenization in cleared derivatives. He shares insights on why it's gaining traction, the potential for 24/7 cash movement, and how tokenization could streamline settlement processes. Walt discusses the regulatory landscape for stablecoins and suggests money market funds as early candidates for tokenization. He emphasizes the importance of international standards and the transformative analogy to electronic trading.
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24/7 Value Movement Changes Risk Dynamics
- Tokenization and stablecoins can solve payment rail limits by enabling 24/7 value movement and transparency.
- This could reduce weekend risk build-up by allowing real-time settlement and custody in wallets.
Winklevoss Cash-Flight Example
- Walt recounts the Winklevoss example of it being faster to fly cash to Singapore than wire money.
- That story illustrates why founders sought blockchain solutions to move value 24/7.
Build Rails Before Apps
- Do build token rails first so money can move faster and de-risk systems in real time.
- Faster value movement can enable T0 settlement, reduce risk, and expand capacity for new trading.