The Securities and Exchange Commission (SEC) posted a memo detailing a meeting between its Crypto Task Force and JP Morgan. While the task force primarily handles cryptocurrency issues, it also oversees tokenization matters that increasingly affect traditional finance (TradFi) companies. JP Morgan’s meeting agenda revealed three key discussion points: an overview of its existing digital finance services including repo solutions and debt platforms, analysis of how capital markets activity might migrate to public blockchains, and plans for future regulatory engagement. The discussion likely centered heavily on tokenized collateral, an area where multiple regulators are actively involved. The CFTC is currently running tokenized collateral pilots for derivatives margin posting, and the DTCC is launching its own platform. The CME is also participating in this space. Tokenization offers a solution by allowing institutions to transfer tokenized securities directly to meet margin requirements without selling underlying assets. JP Morgan’s recent announcement of JPMD deposit tokens on the Base public blockchain further addresses cash collateral needs, providing an alternative to stablecoins. The bank already operates a tokenized collateral solution on its permissioned blockchain, Kinexys, alongside an intraday repo solution called Digital Financing and a bond issuance platform called Digital Debt Services. However, using permissioned blockchains creates integration challenges that public blockchains can ease.