Tokenized Cash Management Advisory Group Publishes Core Principles for Digital Money (21 Apr)

The advisory group convenes treasury practitioners to ensure that tokenization meets the rigorous standards of corporate cash management.

LONDON and NEW YORK, April 21, 2026 /PRNewswire/ -- The Tokenized Cash Management Advisory Group (TCMAG) today published a set of principles for the adoption of digital money in corporate treasury.

TCMAG has been formed as a 'voice of the corporate' group to guide the responsible adoption of tokenization in cash management, ensuring that new forms of digital money meet stringent risk, control, and operational requirements.

Darsh Johal, Chair of TCMAG said, "Our role is to ensure that the practitioner's perspective is embedded early in the development of tokenized money, so that solutions address real client needs. We recognize that many solution providers bring strong technological capabilities and can benefit from deeper engagement with the practical realities of our discipline. To support this evolving field, we have established an initial set of principles to help guide industry development in alignment with the rigorous requirements of corporate treasury."

Principles for Tokenized Corporate Cash Management

TCMAG supports the development of interoperable, standardized, secure, and multi-issuer tokenized cash solutions that move beyond pilot use cases into real-world production. While early initiatives have demonstrated technical feasibility, broader adoption will depend on a client-centric approach.

Corporate treasurers expect tokenized solutions to meet the following minimum characteristics:

1. Compliance: Solutions must operate within applicable legal and regulatory frameworks across all relevant jurisdictions.
2. Multi-Bank / Multi-Issuer: Corporates operate across multiple banking and fintech relationships. Solutions must support standardized, multi-institution architectures and avoid single-provider dependency.
3. Accounting Standards: Providers must demonstrate unambiguous accounting treatment for tokenized instruments, including clear classification, valuation, and disclosure.
4. Integrated: Solutions must integrate seamlessly with existing TMS and ERP platforms using standard interfaces. Traditional and tokenized rails will coexist for the foreseeable future.
5. Secure: Solutions must meet or exceed existing security standards and any novel risks (e.g. key management) must be clearly identified and mitigated.
6. Interoperability: Walled garden solutions and vendor lock-in are unacceptable. Interoperability across solution layers should be provided.
7. Confidentiality: Balances and transactions must remain private.
8. Functional Equivalence: Tokenized solutions must at minimum replicate, and ideally enhance, core treasury capabilities such as pooling, sweeping, netting, and in-house banking.
9. 24/7 Operations: Tokenized solutions should enable continuous, real-time operations, removing constraints such as cut-off times, bank holidays, and time zone limitations.
10. Controls: Maker-checker workflows, segregation of duties, approval hierarchies, and audit trails must be maintained without compromise.
11. Settlement Finality: Transactions in tokenized money must settle with legal finality.
12. Operational Resilience: Solutions must address non-standard scenarios, including error handling, reversals, and dispute resolution.

TCMAG will continue to refine these principles and provide more detailed guidance through ongoing engagement with solution providers and industry stakeholders. 

TCMAG Sponsors

The work of TCMAG is supported by: A&O Shearman, AllUnity, Barclays, BitGo, Dfns, Digital Asset, Finmo, The Global Legal Entity Identifier Foundation (GLEIF), HSBC, Lloyds Bank, Partior, SAP, Swift, Ubyx, Zanders and ZKsync.

Issuers of tokenized deposits, stablecoins, and tokenized money market funds, along with chains, wallet providers, TMS and ERP providers, and other ecosystem participants are welcome to engage with TCMAG to help co-create the future of tokenized corporate treasury.

About TCMAG

The Tokenized Cash Management Advisory Group is a neutral and independent group of treasury practitioners who wish to positively influence the adoption of new forms of digital money in line with corporate treasury requirements.

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