Wall Street’s push into blockchain infrastructure has reached a new milestone. The Depository Trust & Clearing Corporation (DTCC), the central clearing and settlement institution in the US securities market, launched the DTCC Tokenization Service on October 28.
Twenty financial institutions, including JPMorgan, Citi, Fidelity and Morgan Stanley, have signed agreements to use it, marking a concrete step beyond blockchain experimentation.
DTC Rolls Out Multi-Network Tokenization Platform
The service, called DTS, is operated by DTCC subsidiary Depository Trust Company (DTC). It lets users convert securities between traditional and tokenized forms and receive them in a digital wallet. According to DTCC, tokenized securities keep the ownership, investor protection and economic rights of traditional securities.
Sponsored
DTCC says the platform is designed to let participants move assets more efficiently, access new liquidity pools and use collateral within minutes. CEO Frank La Salla said the aim is to help institutions “responsibly adopt digital assets at scale.”
Beyond JPMorgan, Citi, Fidelity and Morgan Stanley, the firms that have signed on include Bank of America, BNP Paribas, UBS and Velocity Capital. DTCC expects more users to be added.
DTS uses a multi-network, interoperable model. It is currently deployed on the Canton Network and DTCC’s private network, which is built on Hyperledger Besu. More blockchain networks are planned for 2027.
Eligible assets include Russell 1000 constituents, exchange-traded funds (ETFs) tracking major indices, and tokenized US Treasuries. DTCC says it incorporated feedback from more than 150 companies in its DTC Digital Asset Solutions Industry Working Group.
Regulatory Backing Shapes the Rollout
DTCC received a no-action letter from the US Securities and Exchange Commission (SEC) last December. It authorizes DTC to offer tokenization services on an approved blockchain for three years.
In March, the SEC also approved rule changes allowing Nasdaq to implement tokenized settlement, initially limited to Russell 1000 stocks and ETFs tracking the S&P 500 and Nasdaq 100. The agency is also working on an innovation framework for crypto platforms.
DTCC sits at the core of US market infrastructure and reports more than $114 trillion in assets under custody. DTC holds securities in custody and supports the systems through which trades settle.
On the Flipside
- The initial scope is narrow, covering only Russell 1000 stocks, major ETFs and tokenized Treasuries.
- The SEC authorization is a three-year no-action letter, not a permanent rule.
- Benefits for retail investors, such as faster transfers and new collateral uses, remain unproven.
Why This Matters
DTCC’s role in US settlement means its entry gives tokenized securities a regulated, institution-backed foundation. It signals that major banks and asset managers are moving tokenization from pilots toward live infrastructure.
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