DTCC to Launch Stock Tokenization Service in October
Stocks
The Depository Trust & Clearing Corporation (DTCC) is set to launch a new stock tokenization service this October, hosted on the Canton Network. This initiative enables institutional investors to tokenize shares of major Russell 1000 companies, such as Nvidia, Apple, and Microsoft, facilitating transfers between approved wallets. The service follows a successful pilot program that engaged 40 prominent financial institutions, including JPMorgan, Goldman Sachs, and BlackRock. By leveraging blockchain technology, the DTCC aims to significantly reduce settlement costs and increase transaction speeds for traditional equities. Furthermore, the platform is designed to extend trading hours while maintaining existing custody arrangements for market participants. This development represents a major step toward integrating traditional financial infrastructure with distributed ledger technology. The move underscores the growing institutional appetite for tokenized assets to improve operational efficiency in global capital markets.
Key points
- ▸DTCC launches stock tokenization on the Canton Network this October.
- ▸Service supports tokenizing Russell 1000 equities like Nvidia, Apple, and Microsoft.
- ▸Pilot program included 40 firms, notably JPMorgan, Goldman Sachs, and BlackRock.
- ▸Platform aims to reduce settlement costs and enable extended trading hours.
Background
The DTCC is the central securities depository for the U.S. financial system, providing clearing and settlement services for the vast majority of equity trades. The Canton Network is a privacy-enabled, interoperable blockchain network specifically designed for institutional finance to facilitate the secure exchange of tokenized assets.
Relevance
9.5/10