Alpaca Joins JPMorgan and Citadel Securities as US Settlement Hub Starts Tokenizing Stocks
RWA Signal Insight
InfrastructureBroker-dealer Alpaca has joined 19 other financial institutions as a participant in the Depository Trust & Clearing Corporation's (DTCC) newly launched tokenization service. This platform enables the conversion of US stocks, ETFs, and Treasury securities held at the DTCC into digital tokens and back again. The initiative follows a December 2025 SEC no-action letter and successful pilot testing involving over 30 firms. By leveraging the Canton Network and a private Besu blockchain, the service aims to bridge traditional market infrastructure with on-chain liquidity. Notable participants include JPMorgan, Citadel Securities, UBS, and Fidelity, while other major players like Kraken and Robinhood remain absent from the initial list. The DTCC manages a security pool exceeding $114 trillion, and this integration marks a significant step toward standardizing tokenized asset settlement. The service currently supports Russell 1000 constituents and major ETFs, with plans to expand blockchain network support by 2027.
Key points
- DTCC launched a tokenization service for US stocks, ETFs, and Treasuries with 20 participants.
- Participating firms include JPMorgan, Citadel Securities, UBS, Fidelity, and Alpaca.
- The service utilizes the Canton Network and a private Besu blockchain for asset settlement.
- Eligible assets currently include Russell 1000 constituents and major index-tracking ETFs.
Background
The Depository Trust & Clearing Corporation (DTCC) is the central securities depository for the United States, providing clearing and settlement services for the vast majority of equity and debt trades. By tokenizing assets held within its massive $114 trillion pool, the DTCC aims to modernize market infrastructure, reduce settlement times, and enable interoperability between traditional finance and blockchain-based systems.