- DTCC and SDF plan to tokenize DTC-custodied assets on the Stellar network.
- The collaboration will allow users to leverage traditional assets in a digital ecosystem.
- DTC-tokenized assets will retain the same protections and safeguards as traditional securities.
The Depository Trust & Clearing Corporation (DTCC), in collaboration with the Stellar Development Foundation (SDF), has announced plans to enable the tokenization of The Depository Trust Company (DTC) custodied assets on the Stellar network.
The announcement highlighted the collaboration between DTCC and the SDF as part of DTCC’s standards-driven, multi-chain strategy. This comes after the SEC issued a No-Action Letter in December 2025, authorizing DTC to implement and operate a new service to tokenize real-world, DTC-custodied assets.
Leveraging Traditional Assets in a Digital Ecosystem
With the latest development, market participants can now leverage traditional assets in a digital ecosystem, with opportunities for faster settlement, greater asset mobility, extended trading hours, and lower costs and risks. It is worth noting that DTC-tokenized assets will have the same investor protections, entitlements, and safeguards as traditionally held securities.
Frank La Salla, President and Chief Executive Officer of DTCC, stated that the collaboration represents another step forward for the company in its effort to build an open, interoperable digital infrastructure that bridges traditional and digital markets. According to La Salla, DTCC is committed to expanding opportunities for market participants to utilize tokenized assets to access deeper liquidity, achieve greater efficiency, and increase transparency on a public blockchain.
He further stated that tokenized assets could maintain the same investor protections and safeguards currently used for traditionally held assets at DTC. He added that tokenization can improve transaction efficiency, capital efficiency, observability, collateral mobility, and support extended trading hours.
Expressing Blockchain’s Utility in Finance
Meanwhile, Stella Development Foundation CEO Denelle Dixon described DTCC as the backbone of global capital markets, stating that integrating the platform’s tokenization service with Stellar connects public blockchain networks to regulated market infrastructure.
According to Dixon, Stellar’s proven compliance-minded architecture, open infrastructure, and risk management capabilities align with market demands and expectations. He further noted that the company’s network was built for moments like this, reiterating their belief that blockchain’s utility in finance is to serve as the rail institutional-grade markets can depend on.
According to the announcement, the initial stages will involve DTCC and SDF collaborating to evaluate tokenization use cases for eligible asset classes, including opportunities to tokenize highly liquid assets such as constituents of the Russell 1000, ETFs tracking major indices, and US Treasury bills, bonds, and notes that are consistent with DTC’s regulatory obligations.
Related: DTCC and Chainlink Expand Blockchain Push in Finance Systems
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
