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DTCC launches tokenization service for securities
The post-trade infrastructure provider enables conversion of securities into digital tokens while maintaining investor protections.
Key takeaways
- Regulatory approval enabled launch. The SEC issued a no-action letter in December 2025, clearing the way for DTCC's tokenization program to proceed without enforcement action.
- Major financial institutions participating. Early adopters include JPMorgan, Fidelity Investments, Citi, Bank of America, Barclays, Morgan Stanley, State Street and UBS among 20 initial signatories.
- One-to-one asset representation. Each tokenized security maintains the same CUSIP identifier and ownership rights as its traditional counterpart, with transfers settable around the clock.
What happened
The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), opened its tokenization service on October 28, enabling approved financial firms to create digital representations of securities held in DTC custody. The service converts securities between traditional and tokenized forms, with tokens transferable to digital wallets while retaining identical ownership rights and investor protections as their conventional counterparts.
The initial rollout covers 34 securities and includes 20 client firms that have signed access agreements. Participants span major financial institutions including JPMorgan, Fidelity Investments, Citi, Bank of America, Barclays, Morgan Stanley, State Street, UBS, Citadel Securities, and others. Each tokenized security maintains a one-to-one relationship with its underlying asset and uses the same CUSIP identifier as the traditional security.
DTC oversees more than $114 trillion in assets under custody, including stocks and exchange-traded funds. The service currently integrates with Canton Network and DTCC's Besu private blockchain, with plans to add additional blockchain networks in 2027. Approved firms can convert holdings into tokens and back to traditional form, while transfers between registered digital wallets can occur around the clock with DTC tracking ownership changes in near real time.
Why it matters
The launch represents a major step in bridging traditional financial infrastructure with blockchain technology. By enabling established post-trade systems to incorporate digital assets while maintaining existing regulatory frameworks and investor protections, DTCC has created what it describes as a practical path for tokenized securities adoption. The service allows securities to move outside traditional settlement channels and across approved digital networks, potentially reducing settlement times and operational friction while keeping assets under institutional custody and regulatory oversight.
Background
DTCC first announced plans for its tokenization program in May, with a pilot scheduled for July 2026 and a full trading service launch targeted for October 2026. The company worked with more than 150 firms during the development phase, including wallet and technology collaborators such as BitGo, Blockdaemon, Broadridge, Fireblocks and Ondo. In December 2025, the US Securities and Exchange Commission granted DTC a three-year no-action letter covering certain Russell 1000 shares, major index exchange-traded funds and US Treasury securities, providing regulatory clarity for the initiative to proceed.
The tokenization effort occurs amid broader industry interest in digital securities infrastructure. In July, DTCC conducted live transactions with more than 30 firms involving tokenized assets, including Treasury trades, share transfers and securities lending. The rollout also reflects growing calls from industry leaders for clearer regulatory frameworks around tokenized stocks in the United States.
What to watch
DTCC plans to expand the service by adding more blockchain networks in 2027 and increasing the number of participating financial institutions and covered securities. The initial 34 securities represent only the beginning of potential tokenization coverage across DTC's massive custody holdings. How rapidly adoption spreads and whether additional regulatory clarifications emerge will shape the trajectory of tokenized securities in mainstream finance.
Questions readers ask
What exactly is a tokenized security?
A tokenized security is a digital representation of a traditional security like a stock or ETF. Each token represents the underlying asset on a one-to-one basis and maintains the same ownership rights, investor protections and CUSIP identifier as the conventional security.
Can individual investors use this service?
The service is limited to eligible financial firms that have signed access agreements with DTC. DTCC has not disclosed specific eligibility criteria for participating institutions.
How does settlement work with tokenized securities?
Transfers between registered digital wallets can occur around the clock, with DTC tracking ownership changes in near real time. This contrasts with traditional settlement cycles and allows movement across approved blockchain networks while assets remain under DTC custody.
Sources · 5 publishers
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DTCC unit launches tokenization services
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DTCC Tokenization Launches With 34 Securities, More Ahead -
Major Banks Sign on as DTCC Launches Tokenized Securities Service -
DTCC Launches Securities Tokenization Service With Initial Support for 34 Assets -
DTCC launches tokenization service with 20 major firms
