DTCC Turns On Its Tokenized Securities Service for 20 Clients, Meeting Its October Target
RWA Signal Insight
InfrastructureThe Depository Trust Company (DTC), a subsidiary of the DTCC, has officially launched its tokenization service, enabling clients to convert traditional securities into digital tokens. This milestone follows a successful pilot phase and meets the company's stated October launch target. Twenty major financial institutions, including J.P. Morgan, Citi, Morgan Stanley, Fidelity, and Citadel Securities, have signed agreements to utilize the platform. The service currently supports 34 eligible securities, including Russell 1000 constituents, major index ETFs, and U.S. Treasury securities. Tokens minted through this service maintain the original legal and economic rights of the underlying assets, with bidirectional conversion between book-entry and tokenized forms. The infrastructure operates on both the Canton Network and a private Besu network, with plans to expand to additional blockchains by 2027. This development represents a significant step in integrating traditional, regulated market infrastructure with distributed ledger technology, leveraging the DTC's massive $114 trillion custody base.
Key points
- DTCC launched its tokenization service with 20 initial institutional clients signed on.
- Service supports 34 securities including U.S. Treasuries, Russell 1000 stocks, and ETFs.
- Platform operates on the Canton Network and a private Besu blockchain.
- DTC holds over $114 trillion in assets under custody for the financial industry.
Background
The Depository Trust & Clearing Corporation (DTCC) is the primary central securities depository in the United States, providing clearing and settlement services for the vast majority of U.S. financial market transactions. By tokenizing these assets, the DTCC aims to modernize legacy settlement processes, reduce operational friction, and enable atomic settlement on distributed ledgers while maintaining compliance within a regulated framework.