The Depository Trust Company, a DTCC subsidiary, launched the DTCC Tokenization Service on October 28, 2026. The service lets 20 signed participants mint 1:1 tokenized versions of select DTC-custodied securities on the Canton Network and a private Hyperledger Besu instance.
Service Mechanics and Initial Coverage
Participants convert eligible holdings during business hours, with target completion under 15 minutes. Tokens carry the same CUSIP, ownership rights, and economic entitlements as the underlying assets that remain in DTC custody. Official books and records stay with DTCC.
The launch covers 25 to 34 instruments drawn from large-cap Russell 1000 stocks, major-index ETFs, and U.S. Treasuries. These assets represent roughly $30 trillion of the more than $114 trillion in total DTC custody. Twenty-four-hour peer-to-peer transfers are available between registered wallets on the same network, supporting collateral mobility and securities lending use cases.
Conversion occurs on the Canton Network using the CIP-56 standard or DTCC’s private Besu environment. Stellar and Circle’s Arc networks are scheduled for addition in 2027, expanding settlement options for tokenized positions.
Participant Onboarding and Operational Context
Access agreements have been executed by J.P. Morgan, Bank of America, Citi, Morgan Stanley, Fidelity Investments, Barclays, UBS, State Street, Citadel Securities, Alpaca, and Edward Jones. Additional firms continue to complete onboarding.
The service follows a December 2025 SEC staff No-Action Letter that authorized a three-year pilot for tokenizing Russell 1000 equities, major ETFs, and U.S. Treasuries. Limited-production activity began on July 15, 2026, involving more than 30 firms across collateral, securities lending, repo, and equity trades on Canton and Besu.
DTCC CEO Frank La Salla stated that the launch extends DTC’s existing resiliency, governance, and operational standards into digital markets. The infrastructure is positioned to support scaled institutional adoption without altering investor protections.
Expansion Plans Through 2027
DTCC’s published roadmap outlines further network integrations, additional securities eligibility, and on-chain settlement features during 2027. No transaction volume or tokenized asset figures have been released at launch.
Firms that have signed agreements can now test collateral and liquidity workflows that previously required off-chain reconciliation. The 1:1 backing model keeps regulatory books unchanged while enabling 24/7 movement of digital representations between approved counterparties.
Frequently asked questions
Which networks support the DTCC Tokenization Service at launch?
The service operates on the Canton Network and DTCC’s private Hyperledger Besu network. Stellar and Circle’s Arc are planned for addition in 2027.
How many securities are eligible for tokenization initially?
Between 25 and 34 instruments, including large-cap Russell 1000 stocks, major ETFs, and U.S. Treasuries, representing about $30 trillion in market value.
Do tokenized securities retain the same rights as the underlying assets?
Yes. Tokens are backed 1:1, carry identical ownership rights, investor protections, economic entitlements, and CUSIP identifiers, with DTC maintaining official records.
Which institutions have signed access agreements?
J.P. Morgan, Bank of America, Citi, Morgan Stanley, Fidelity Investments, Barclays, UBS, State Street, Citadel Securities, Alpaca, and Edward Jones are among the 20 participants that have signed.
By YasTech Editorial
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