DTCC launches tokenization service with 20 firms signed up

The Depository Trust Company, part of DTCC, launched the DTCC Tokenization Service on Wednesday, 28 Oct, the group said. The service mints tokenized entitlements of securities held at DTC that keep the rights of the originals, on the Canton Network and DTCC’s private Besu network.

Twenty DTC participants have signed agreements, among them J.P. Morgan, Citi, Bank of America, Morgan Stanley, Fidelity Investments and Citadel Securities.

The constraint is the eligibility list, not the chain. Just 34 securities are eligible at launch, a mix of equities, Treasuries and ETFs, Ledger Insights reported, and CoinDesk cited the same count from DTCC’s product website. The SEC no-action letter DTC received in December 2025 covers far more: Russell 1000 stocks, ETFs tracking major indices and US Treasuries.

Round-the-clock movement is also narrower than it sounds. A transfer between registered wallets is the settlement itself, with no T+1 wait, and tokens keep the same CUSIP identifier as the underlying security.

Moving tokens between chains, or between tokenized and conventional form, still depends on DTC’s conversion service. That service is open only on business days, between 2am and 6pm New York time, Ledger Insights said.

More than 150 firms sat on the industry working group that helped design the service. About seven months after the no-action letter, DTCC and more than 30 firms completed limited-production trades, the release says. “Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure,” said Frank La Salla, DTCC’s president and chief executive.

Other signatories include Alpaca, Apex Clearing, Barclays, BNP Paribas, Brown Brothers Harriman, Clear Street, DriveWealth, Edward Jones, Interchange Clearing, Marex, Mirae Asset Securities (USA), State Street, UBS and Velocity Capital. Ledger Insights noted that BNY is absent, as is Goldman Sachs, a participant in the July trials.

DTC holds more than $114 trillion of assets in custody, and DTCC says more blockchain networks will be added in 2027. For background, see what tokenized stocks are.

This article is for information only and is not investment advice.