- JPMorgan completed a live tokenized QQQ transaction, bringing blockchain into traditional finance.
- The pilot showed tokenized securities can be used as collateral within existing market infrastructure.
- DTCC’s tokenization project includes major Wall Street firms testing blockchain-based asset settlement.
JPMorgan has completed the tokenization of the Invesco QQQ Trust in a live transaction, another step in Wall Street’s efforts to integrate blockchain technology into traditional financial markets. The Depository Trust & Clearing Corporation (DTCC) said the transaction was completed using existing market infrastructure, allowing tokenized securities to be processed within the current financial system.
“JPMorgan successfully completed an equity token conversion involving the Invesco QQQ Trust (QQQ), offering a practical example of tokenization at work within trusted market infrastructure,” DTCC said in a post on X. The transaction is part of a broader push by financial institutions to explore how blockchain can be used to modernize capital markets.
Tokenized Collateral Reaches Live Markets
JPMorgan also used the tokenized security to meet margin requirements with CME Group, extending the transaction beyond a simple asset conversion.
DTCC said a Depository Trust Company member transferred tokenized collateral to a central counterparty as part of the transaction. The process showed how tokenized assets can move across the financial system while remaining within established regulatory and market frameworks.
The Invesco QQQ Trust is one of the world’s most actively traded exchange-traded funds, making it a high-profile example of tokenized securities being used in traditional financial markets.
Wall Street Expands Tokenization Push
The transaction is part of a DTCC pilot program involving nearly 40 financial institutions, including BlackRock, JPMorgan, Goldman Sachs, Vanguard, and the New York Stock Exchange.
As part of the initiative, DTCC is exploring the tokenization of assets including Microsoft shares, Circle shares, U.S. Treasuries, and several exchange-traded funds. The project is designed to test how tokenized securities can operate within existing market infrastructure.
DTCC provides clearing and settlement services for financial markets and processes transactions tied to about $114 trillion in assets under custody, giving the pilot broad relevance across the industry.
Blockchain Strategy Focuses on Infrastructure
DTCC is using enterprise blockchain networks for the pilot instead of public blockchains such as Ethereum or Solana. The project runs on Hyperledger Besu and the Canton Network.
“The digital conversions occurred on HyperLedger Besu (DTCC’s private network) and Canton (a public network),” Bloomberg ETF analyst Eric Balchunas said.
DTCC is also working with Microsoft on the project, which is scheduled to expand in October. The next phase will allow participating financial institutions to carry out more live blockchain transactions as the pilot continues.
Related: DB Securities, Optimism Partner on Jeju-Focused Tokenized Asset Initiative
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