CoinDesk
DTCC has launched its tokenization service on Canton Network and private blockchain Besu, bringing U.S. stocks, ETFs and Treasuries onto blockchain infrastructure. Twenty firms, including JPMorgan, Citi, Morgan Stanley, Bank of America and UBS, have signed agreements to access the service.
Why it matters
DTCC sits at the center of U.S. securities markets. Its subsidiary Depository Trust Company holds more than $114 trillion in securities, and the new service connects blockchain-based transfers to that established custody infrastructure. Tokens are backed one-for-one by securities held at DTC, while official ownership records remain with DTC.
That structure distinguishes the service from synthetic stock tokens that track share prices without giving holders ownership of the underlying securities. Eligible firms can tokenize securities during business hours, with DTCC targeting processing times of 15 minutes or less. Once tokenized, assets can move between registered wallets around the clock, subject to compliance restrictions.
Market impact
The launch gives participating institutions a route to transfer tokenized securities while preserving existing shareholder protections. DTCC’s plans include onchain settlement with digital cash and using tokenized securities as collateral, though those features are part of its roadmap rather than the current service.
The rollout follows a U.S. Securities and Exchange Commission no-action letter permitting DTCC to tokenize a defined set of securities. DTCC also plans to add Stellar and Arc in 2027. Nasdaq and NYSE are developing tokenized securities infrastructure, pointing to a broader effort to bring blockchain into established market operations.
Frequently asked questions
-
Which securities can DTCC's tokenization service bring onto blockchain infrastructure?
The service covers U.S. stocks, ETFs and Treasuries. DTCC's SEC no-action letter applies to a defined set of securities.
-
How does DTCC preserve ownership rights for tokenized securities?
Tokens are backed one-for-one by securities held at DTC, and DTC keeps the official ownership records. This differs from synthetic tokens that only track share prices.
-
How quickly can firms tokenize securities through the service?
Eligible firms can tokenize securities during business hours, with DTCC targeting processing times of 15 minutes or less.
-
Can DTCC-tokenized securities move outside business hours?
Once tokenized, the assets can move between registered blockchain wallets around the clock, subject to compliance restrictions.
-
What features does DTCC plan to add to its tokenization service?
DTCC plans to add settlement with digital cash, allow tokenized securities to be used as collateral, and add Stellar and Arc in 2027.
CoinTelegraph
TheBlock
WuBlockchain
CryptoSlate
Crypto News