The Depository Trust and Clearing Corporation (DTCC) has launched a tokenization service to connect traditional securities markets with blockchain technology. The initiative aims to improve liquidity, accelerate collateral transfers, and simplify access to digital financial markets.
According to the press release, through its new DTCC Tokenization Service, eligible investors can convert securities held by its subsidiary, the Depository Trust Company (DTC), into digital representations. These tokens preserve existing ownership rights and investor protections. DTC currently holds more than $114 trillion in assets under custody.
Major Financial Institutions Join Tokenization Initiative
DTCC has secured participation agreements from 20 financial institutions, including JPMorgan, Citigroup, Barclays, and Morgan Stanley. Additionally, more firms will join as the company gradually expands access. The initiative also reflects collaboration with more than 150 firms that contributed industry expertise during development.
Consequently, the service could help financial institutions integrate blockchain-based assets into established investment and settlement processes. Investors may also benefit from faster collateral movement and access to additional liquidity opportunities.
Interoperability Supports Broader Adoption
DTS currently connects with the Canton Network and DTCC’s private Besu network. Moreover, DTCC plans to integrate additional blockchain networks in 2027, expanding connectivity between traditional markets and digital platforms.
The launch follows regulatory progress in December 2025, when the U.S. Securities and Exchange Commission issued DTC a no-action letter. This authorization covered selected U.S. equities, index-tracking exchange-traded funds, and Treasury securities. Hence, DTCC is advancing tokenization toward wider institutional use within regulated financial markets.
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