The Depository Trust Company, a subsidiary of market-infrastructure operator DTCC, launched its Tokenization Service on October 28, moving selected U.S. securities from pilot transactions into a production system. The service allows eligible DTC participants to create digital representations of assets already held at the depository, deliver them to registered digital wallets and convert them back into traditional form. DTCC said the tokens retain the ownership rights, investor protections and economic entitlements of the underlying securities.

A bridge from custody records to digital wallets

The service does not create a separate synthetic claim on a stock or Treasury. It records a tokenized security entitlement backed by the corresponding asset at DTC, which has more than $114 trillion of securities under custody. Participants can mint and burn those entitlements while the underlying assets remain within established depository controls. DTCC says tokenized assets can move between registered wallets around the clock, although creation and redemption continue to depend on its operating procedures and compliance checks.

Related reporting: BNY and Citadel Put Tokenized Treasury Into Triparty Repo

Twenty institutions have signed access agreements

DTCC named 20 participants that have signed agreements to access the service. The group includes Bank of America, Barclays, BNP Paribas, Citi, Fidelity Investments, J.P. Morgan, Morgan Stanley, State Street, UBS and Citadel Securities, alongside brokers and other market firms. Signing an agreement establishes access, but it does not show how much each institution will tokenize or when every participant will begin using the system. DTCC said additional users will be added over time.

Canton and Besu are live first

The service initially connects to Canton Network and DTCC's private Besu network. DTCC describes the design as multi-network and interoperable, allowing tokenized assets to be used across approved digital environments without abandoning the traditional market record. Additional networks are planned for 2027. That roadmap remains prospective: each new network will still need to meet DTCC's requirements for security, resilience, governance, observability and regulatory compliance.

The regulatory scope is defined, not open-ended

The launch follows a December 2025 no-action letter from the U.S. Securities and Exchange Commission. The authorization covers selected Russell 1000 shares, exchange-traded funds tracking major indexes and U.S. Treasury bills, notes and bonds during a defined three-year period. It does not authorize tokenization of every security held at DTC. DTCC's product materials also describe the service as voluntary for eligible participants, rather than a replacement for conventional custody and settlement.

Why the launch matters

DTCC sits at the center of U.S. post-trade infrastructure, so a production service can connect tokenized assets with institutions that already clear, settle and custody securities through established systems. The immediate use cases include moving collateral, securities lending, repo and delivery-versus-payment transactions. Faster movement could reduce operational delays and make assets available for collateral outside normal market hours. Those benefits depend on participating firms, wallet systems and settlement applications working together without fragmenting liquidity or controls.

Adoption and scale remain the next test

The service is live, but the announcement does not disclose tokenized balances, transaction volume or participant-by-participant usage. CoinDesk reported that 34 securities are eligible at launch, representing about $30 trillion in market value, citing a DTCC spokesperson. Eligibility is not the same as assets actually tokenized. The next evidence of scale will be sustained issuance, transfers and collateral use across institutions, plus the addition of networks and digital-cash settlement tools now planned for 2027.

Sources

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