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DTCC Launches Tokenization Service for $30 Trillion in U.S. Securities
DTC-backed tokens can move around the clock across Canton and Besu
TL;DR
- DTCC launched its tokenization service for eligible U.S. stocks, ETFs and Treasury securities on Canton Network and its private Besu blockchain.
- Tokens represent securities already held at DTC, retain existing ownership rights and investor protections, and can move between registered wallets around the clock.
- Twenty firms have signed agreements to access the service, while DTCC plans additional networks, digital-cash settlement and tokenized collateral support.
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The Depository Trust & Clearing Corporation launched its tokenization service on October 28, 2026, allowing eligible clients to convert securities held at its Depository Trust Company subsidiary into blockchain-based tokens. Twenty participants have signed agreements to access the service, which is live on Canton Network and DTCC’s private Besu blockchain and preserves the ownership rights attached to the underlying securities.
The DTCC Tokenization Service, or DTS, converts securities between traditional and tokenized forms. The tokens are backed one-for-one by securities held at DTC and can be transferred between registered digital wallets around the clock.
Official ownership records remain with DTC, distinguishing the structure from synthetic stock tokens that track a share price without granting ownership of the underlying security. DTCC said its approach provides a “practical path” for tokenized securities adoption.
DTCC Starts With Stocks, ETFs and U.S. Treasuries
Initial support covers select large-cap stocks from the Russell 1000 index, exchange-traded funds and U.S. Treasury bills, notes and bonds. The launch sits within DTC’s existing custody infrastructure, rather than creating a separate pool of securities outside its traditional system.
Eligible firms can convert securities into tokens during business hours. After conversion, those assets can move between registered blockchain wallets around the clock, subject to compliance restrictions. The service retains the same ownership rights and investor protections as the securities’ traditional forms.
Signed participants named across the launch materials include Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street, UBS, Alpaca, Clear Street, DriveWealth and Interchange Clearing. DTCC said additional firms are expected to join over time.
Frank La Salla, DTCC’s president and CEO, said the launch marked “the culmination of years of work” to place tokenized securities within a regulated framework supported by established market infrastructure.
“By extending DTC's resiliency, governance and operational standards into digital markets, we are establishing the foundation for responsible institutional adoption at scale,” La Salla said.
Launch Follows SEC No-Action Letter and Pilot
The rollout followed regulatory and testing steps stretching back to December 2025, when the U.S. Securities and Exchange Commission issued a no-action letter stating that it would not recommend enforcement action against DTC in connection with the proposed tokenization program. The authorization covered a defined set of securities.
DTCC said in May that it planned a full service launch in October 2026 after a July 2026 pilot. The current rollout follows that earlier demonstration and puts the previously announced tokenization framework into operation.
DTCC’s road map calls for broader blockchain support in 2027. Stellar and Arc are planned additions alongside wider corporate-action capabilities. DTCC also plans tools that would allow transactions to settle using digital cash and enable tokenized securities to be used as collateral.
Tokenization is intended to make financial assets easier to transfer, settle and deploy as collateral while connecting blockchain-based securities with existing market infrastructure. Citi analysts projected that the tokenized securities market could reach $5.5 trillion by 2030 as institutional adoption expands.
Other U.S. market operators are also developing blockchain-based securities infrastructure. Nasdaq and the New York Stock Exchange are working on tokenized securities trading systems, while NYSE parent Intercontinental Exchange is set to operate a blockchain-based trading venue with OKX under the SEC’s innovation exemption.
This article has been refined and enhanced by ChatGPT.
