KEY INSIGHTS
- The Tokenization Service launched by DTCC includes 34 eligible securities with an estimated value of $30 trillion in market capitalization.
- The service operates within Canton and Besu private network systems as the ownership information of securities is maintained by DTC itself.
- The agreement has been signed by 20 financial institutions, and DTCC plans to include Stellar and Circle’s Arc by 2027.
The Depository Trust & Clearing Corporation (DTCC) has launched the Tokenization Service on October 28, 2026. In its first release, it comprises 34 securities that have about $30 trillion of market capitalization and is running on the Canton Network and DTCC’s private Besu blockchain.
The launch connects tokenized securities to an established U.S. securities depository. Rather than creating synthetic assets that simply track share prices, DTCC’s system represents securities held in custody while preserving their associated ownership rights, investor protections and economic entitlements.
How the DTCC Tokenization Service operates
Eligible firms can convert securities into tokens during business hours, with DTCC targeting processing times of 15 minutes or less. Once converted, tokens can move between registered blockchain wallets around the clock, subject to compliance restrictions.
Source: Wu Blockchain
The tokens represent each unit of security on a one-to-one basis held in DTC’s custody. The actual securities stay in custody whereas the tokenized form of the securities can be moved using the registered wallets.
This structure distinguishes the service from synthetic stock tokens, which may track a security’s market price without granting ownership of the underlying asset. DTCC says its tokenized securities retain the rights and economic benefits associated with their traditional counterparts.
The eligible asset classes consist of selected large-cap stocks from the Russell 1000 index, ETFs, and U.S. Treasury bills, notes, and bonds. As of its launch, DTCC identified 34 eligible securities that have a market value of around $30 trillion, according to a spokesperson quoted in CoinDesk. This $30 trillion is a measure of the market value of eligible securities, but not of assets already tokenized.
The tokenization service will utilize the current CUSIP identification numbers. DTCC claims that ownership changes will be recorded in near real time by linking blockchain transactions with CUSIP identifiers.
Financial institutions join the initial rollout.
Twenty DTC participants have signed agreements to access the service. The participants include Bank of America, Barclays, BNP Paribas, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, State Street and UBS. Other participants are clearing firms, brokerages, and financial institutions. More will be on board in future through the rolling onboarding process.
The service also involves technology providers, wallet operators, and financial applications. DTCC identified firms including BitGo, Blockdaemon, Broadridge, Fireblocks, Kaleido, Ondo, Talos, Taurus, Tradeweb and Virtu among its collaborators. Initial wallet and application partners also include HashKey.
DTCC created the offering in consultation with over 150 companies that are part of the DTC Digital Assets Solutions Industry Working Group. This move comes after prior pilot tests and limited production trades by DTCC as well as over 30 companies who successfully carried out a number of on-chain transactions.
Regulatory framework and planned network expansion
The tokenization was permitted through a no-action letter provided by the SEC in December 2025. Under this no-action letter, the DTC was allowed to tokenize a selected group of assets that consists of the following: Russell 1000 constituent stocks, ETFs based on benchmark indexes, and US Treasury securities.
The DTCC Tokenization Service currently supports the Canton Network and DTCC’s private Besu blockchain. The company plans to add the Stellar network and Circle’s Arc blockchain in 2027.
DTCC also intends to develop tools for settling transactions with digital cash and using tokenized securities as collateral. These additions form part of its stated roadmap, rather than features confirmed as available at launch.
While Nasdaq and the New York Stock Exchange are developing systems for tokenized securities, their parent company Intercontinental Exchange will be operating a blockchain-powered trading platform in collaboration with crypto exchange OKX under the SEC’s innovation exemption program.
FAQs
What is the DTCC Tokenization Service?
It enables eligible participants to create and transfer blockchain-based representations of securities held at DTC.
Which securities can be accepted at inception?
The original list consists of 34 stocks, which include selected Russell 1000 stocks, ETFs and U.S. Treasuries.
Which blockchain networks are compatible?
The service initially operates on the Canton Network and DTCC’s private Besu blockchain, with Stellar and Circle’s Arc planned for 2027.
