Morgan Stanley Joins DTCC’s Tokenized Securities Network

Morgan Stanley is among the first banks using the Depository Trust & Clearing Corporation's Tokenization Service, which launched Oct. 28 to create blockchain-based versions of US stocks and Treasuries. DTCC says 20 firms have signed up, including J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.

Under the service, DTCC's Depository Trust Company creates tokens representing securities it already holds. Investors can exchange between tokenized and traditional forms, and send tokens to their own digital wallets. DTCC says the tokens retain the original securities' ownership rights and investor protections.

Why it matters

The service brings blockchain-based transfers into established securities infrastructure rather than replacing the underlying assets or their existing protections. Morgan Stanley's Amy Oldenburg said the bank's experience integrating tokenized securities with established market infrastructure will inform the development of its digital-asset capabilities.

DTCC says tokenization could improve liquidity, simplify collateral transfers and make capital use more efficient. Twenty participating firms, including major banks and financial institutions, signal broad institutional interest in testing the model.

Market impact

The service initially covers Russell 1000 stocks, ETFs tracking major indexes and US Treasuries. It runs on Canton and DTCC's private Besu network, with additional blockchains planned for 2027. The SEC cleared the project through a December 2025 no-action letter.

For markets, the near-term significance is the integration of tokenized securities with a central part of US clearing and settlement infrastructure. The service's scope and participating firms provide a concrete test of whether blockchain-based versions can make securities and collateral easier to move while preserving established investor protections.