DTCC Tokenization Service Launches for DTC-Custodied Securities

On October 28, 2026, The Depository Trust Company, a DTCC subsidiary, launched the DTCC Tokenization Service. The service creates tokenized digital twin representations of select DTC-custodied securities on approved blockchains while the underlying assets remain in traditional custody.

Service Mechanics and Eligible Assets

The DTCC Tokenization Service operates on the Canton Network and DTCC’s private Besu blockchain at launch. Conversions between traditional and tokenized forms occur during business hours with a target completion time of 15 minutes or less. Once tokenized, the assets support 24/7 peer-to-peer transfers between registered wallets subject to existing compliance controls.

Tokenized securities carry the same CUSIP identifiers, ownership rights, investor protections, and economic entitlements as their non-tokenized counterparts. They remain fully backed on a 1:1 basis by assets held in DTC custody. The initial eligible pool covers approximately $30 trillion in market value across 34 securities, drawn from large-cap Russell 1000 stocks, major ETFs, and U.S. Treasuries.

DTC currently holds more than $114 trillion in assets under custody. The service does not alter settlement finality or regulatory oversight for the underlying positions.

Participant Onboarding and Regulatory Path

Twenty DTC Participants executed agreements at launch. The group includes Alpaca, Apex Clearing, Barclays, Bank of America, BNP Paribas, Brown Brothers Harriman, Citadel Securities, Citi, Clear Street, DriveWealth, Edward Jones, Fidelity Investments, Interchange Clearing, J.P. Morgan, Marex, Mirae Asset Securities (USA), Morgan Stanley, State Street, UBS, and Velocity Capital LLC. Additional firms are expected to join on a rolling basis.

The launch follows a December 11, 2025 SEC No-Action Letter that authorized a three-year controlled tokenization program for DTC Participants and their clients on pre-approved blockchains. A May 2026 timeline announcement and limited-production trades conducted on July 15, 2026 with more than 30 firms preceded the full rollout.

DTCC CEO Frank La Salla stated that the service marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure.

Planned Expansions

DTCC expects to expand the eligible security universe to the full Russell 1000 and add further blockchain integrations, including Stellar and Circle’s Arc, in 2027. The DTCC Collateral AppChain is scheduled for early 2027. Onboarding of additional ecosystem partners such as BitGo, Blockdaemon, and Fireblocks continues.

The service maintains identical investor protections and settlement processes for tokenized and traditional holdings. Market participants can monitor further announcements from DTCC regarding expanded asset coverage and network support.