According to Wu Blockchain, Citi and The ValueExchange have released the report *Digital Collateral: A Practical Reality*, which states that tokenized collateral is transitioning from pilot programs to real-world applications. Up to 77% of institutions expect to use some form of tokenized collateral by 2026, primarily including cash, money market funds, and government bonds. Currently, about 5% of repo trading volume is conducted in tokenized form each month, and U.S. Treasuries are expected to be available in tokenized form via DTCC by October 2026. The Citi report highlights that globally systemically important banks need to deploy $74 billion in collateral daily across approximately 65 custody locations. However, existing settlement cycles and operational frictions leave about 25% of collateral idle, generating little to no returns. For an average Tier 1 institution, this equates to roughly $15 billion in inefficient assets, with an estimated annual revenue loss of $346 million. Citi believes tokenization can enhance the mobility of collateral across time zones and outside of traditional banking hours, supporting near 24/7 margin management. https://www.(wublock123.com)/news/citi-report-77-percent-institutions-to-use-tokenized-collateral-2026-69069