DTCC launches tokenization service for DTC-held securities

The Depository Trust Company (DTC), a subsidiary of post-trade infrastructure provider DTCC, launched its tokenization service on Oct. 28, bringing digital representations of securities held in DTC custody into its existing market infrastructure, according to DTCC’s launch announcement.

The service connects tokenized securities to DTC-held positions while retaining the ownership rights and investor protections of their traditional forms.

How does the service handle tokenized securities?

DTCC says the service allows eligible users to mint tokenized representations of real-world assets held at DTC and deliver them to digital wallets of their choice. Participants can convert securities entitlements between traditional and tokenized forms. DTCC describes the tokens as “digital twins” that retain the ownership rights, investor protections and economic entitlements of the underlying traditional securities.

The service is integrated with the Canton Network and DTCC’s private Besu network, with additional blockchain networks expected in 2027, according to the announcement. DTCC says its multi-network model is intended to let firms move assets between traditional and tokenized markets. The company reported that DTC holds more than $114 trillion in assets under custody.

Who can access the service, and what is eligible?

DTCC said 20 DTC participants had signed agreements to access the service as of launch, including Alpaca, Bank of America, Citi, Fidelity Investments, J.P. Morgan, Morgan Stanley, State Street and UBS. The agreements indicate access commitments; DTCC said it would onboard future users on a rolling basis.

The service operates under a December 2025 no-action letter from the U.S. Securities and Exchange Commission, which authorized DTC to tokenize Russell 1000 constituents, exchange-traded funds tracking major indices and U.S. Treasury securities, according to the launch announcement. That authorization defines the reported scope; it does not mean every security held by DTC is available for tokenization.

What was tested before the launch?

DTCC said the service followed initial limited-production trading activity about seven months after the SEC letter. In a July 15 announcement, it reported that tokenized DTC-held assets were used in production trades involving more than 30 firms. The activity ran across Besu and Canton and included collateral pledges, securities lending, Treasury repo delivery-versus-payment trades, equity trades and margin workflows, according to DTCC’s report on the July transactions.

The July transactions demonstrated the service in a production environment before its launch. The October announcement describes the service as live, with access through DTC participants and wallet delivery for eligible users. DTCC says tokenized positions can be converted back into traditional form, linking the on-chain representation to securities held within the existing custody system.

Sources

• DTCC’s launch announcement — dtcc.com
• DTCC’s report on the July transactions — dtcc.com