Figure Co-Founder Urges U.S. Adoption of Tokenized Bonds
Mike Cagney argues for a tokenized U.S. Treasury platform following Malaysia’s recent launch of its SSDS+ system.
Updated on Oct. 21, 2026 in Investing
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Should the U.S. Treasury transition to tokenized platforms for managing national bond issuance and settlement?
Figure co-founder Mike Cagney has publicly urged the U.S. Treasury to adopt a tokenized bond platform to reduce costs and increase demand for federal debt. This proposal follows the October 20, 2026, launch of the SSDS+ platform by Bank Negara Malaysia, which manages tokenized bond issuance and settlement.
Why it matters
Proponents believe moving to on-chain platforms could significantly streamline issuance and registration processes for sovereign debt. By integrating digital ledger technologies with central bank settlement systems, countries aim to improve financial market efficiency and responsiveness.
Malaysia’s SSDS+ platform enables 24/7 settlement in central bank money, while DTCC participants have already successfully processed production trades involving tokenized U.S. Treasury securities.
The players
Mike Cagney
He is the co-founder of Figure and a prominent advocate for the integration of blockchain technology in public finance.
Bank Negara Malaysia
This is the central bank of Malaysia which recently launched a specialized platform for the settlement of tokenized bonds.
DTCC
The Depository Trust and Clearing Corporation acts as a central hub for clearing and settling financial transactions in the United States.
The details
The SSDS+ system uses cloud and distributed ledger technology to integrate with Malaysia's RENTAS+ payment network, allowing for continuous settlement. Meanwhile, the U.S. has seen progress in the space, with the DTCC processing production trades for tokenized Treasuries as of July 2026.
Timeline
May 2025: The New York Fed and Bank for International Settlements published Project Pine research.
January 14, 2026: Figure announced the On-Chain Public Equity Network.
July 15, 2026: DTCC processed production trades involving tokenized U.S. Treasury securities.
October 20, 2026: Bank Negara Malaysia announced the SSDS+ platform.
Market Dynamics
The global push toward tokenized government securities represents a structural shift in how sovereign debt is managed and settled by central banks. This move mirrors the evolution of digital financial infrastructure as institutions look to replace legacy settlement processes with high-efficiency, on-chain alternatives.
For retail and institutional investors, the adoption of tokenized bond platforms could mean increased liquidity and 24/7 access to government securities. These technological shifts aim to reduce traditional settlement delays, ultimately lowering transaction costs for those managing bond portfolios.
The takeaway
The transition to tokenized securities is gaining momentum as central banks and financial infrastructure providers test the feasibility of continuous settlement. Investors should monitor how these digital platforms align with existing regulatory frameworks to determine the speed of mainstream adoption.
Further reading
Learn more about the latest trends in digital assets within the Investing section.
Source note: This article includes information reported by Crypto.
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Should the U.S. Treasury transition to tokenized platforms for managing national bond issuance and settlement?
