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DTCC switches on tokenization for U.S. stocks, ETFs and Treasuries, with JPMorgan, Citi and 18 other firms signed up
Summary
The Depository Trust & Clearing Corporation (DTCC), which sits at the center of U.S. securities clearing and settlement, went live Wednesday with a service that lets eligible firms turn securities held at its Depository Trust Company (DTC) unit into tokens, CoinDesk and Cointelegraph reported.
The service runs on the Canton Network and DTCC's private Besu blockchain and initially covers select large-cap Russell 1000 stocks, ETFs and U.S. Treasuries; a DTCC spokesperson told CoinDesk 34 securities worth about $30 trillion in market value are eligible at launch.
The tokens are backed one-for-one by securities held at DTC, keep the same ownership rights and investor protections as the traditional versions, and can move between registered wallets around the clock, subject to compliance limits, both outlets said.
Twenty firms have signed agreements to use it, the outlets reported; CoinDesk named Bank of America, Barclays, Citi, Fidelity, JPMorgan, Morgan Stanley, Citadel Securities, State Street and UBS, while Cointelegraph's list also included Alpaca, Clear Street, DriveWealth and Interchange Clearing.
Updates
- Update, : Update (Nov. 4): Morgan Stanley says it is among the first banks to tokenize U.S. stocks and Treasuries through the service; see our separate story, /news/morgan-stanley-tokenizes-us-stocks-treasuries-via-dtcc-21928d/.
Key facts
- DTC holds more than $114 trillion in assets under custody, according to both CoinDesk and Cointelegraph.
- Firms can convert securities into tokens during business hours, and DTCC is targeting processing times of 15 minutes or less, CoinDesk reported.
- DTCC's road map adds Stellar and Circle's Arc blockchain in 2027, plus tools for settling with digital cash and using tokenized securities as collateral, CoinDesk said; Cointelegraph said more networks are planned for 2027.
- The launch builds on a December 2025 SEC no-action letter covering DTCC's tokenization program, Cointelegraph reported.
- "Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure," DTCC President and CEO Frank La Salla said, per CoinDesk.
- CoinDesk noted that Citi analysts project tokenized securities will become a $5.5 trillion market by 2030.