- Morgan Stanley is among the first banks using DTCC’s tokenization service.
- DTCC’s service runs on Canton Network and Besu, live since October 28.
- More than 20 firms, including JPMorgan and Citi, have signed on.
Morgan Stanley is taking a major step into modern market infrastructure by tokenizing U.S. equities and Treasuries through the Depository Trust & Clearing Corporation’s (DTCC) new Tokenization Service (DTS).
Following the platform’s official launch on October 28, the bank confirmed on X that it is actively using the system to create digital representations of traditional real-world assets.
Sponsored
This move brings Wall Street’s largest institutions closer to fully digital, on-chain trading infrastructure. More than 20 major financial firms—including JPMorgan and Citi—have signed agreements to participate
How Morgan Stanley Is Moving U.S. Stocks and Treasuries On-Chain
In its official X post, Morgan Stanley said it is “among the first banks to tokenize real-world assets” following the DTS launch. The bank said the service converts US equities and US Treasurys into tokenized form.
According to the announcement, DTS creates tokenized representations of securities held in custody at the Depository Trust Company (DTC). Morgan Stanley said the goal is greater liquidity, collateral mobility, and capital efficiency.
DTS has been live since October 28 on the Canton Network and Hyperledger Besu blockchain. The service initially supports selected companies in the Russell 1000 index, ETFs tracking major indices, and US Treasury bills, notes, and bonds. The tokenized assets are designed to support 24/7 settlement, liquidity, and use as collateral.
According to DTCC, approximately $30 trillion in eligible securities may be covered by the initial rollout. More than 20 firms, including JPMorgan and Citi, have signed on to the service.
The tokenized real-world asset (RWA) market is worth $39.4 billion, with U.S. Treasuries accounting for more than $14.2 billion, according to RWA.xyz.
SEC Approval Clears the Path for Wall Street’s Blockchain Push
This institutional migration onto blockchain rails is made possible by clear regulatory framework updates. The U.S. Securities and Exchange Commission (SEC) issued a no-action letter to the DTCC, allowing its subsidiary DTC to operate tokenization services on approved blockchains under a three-year framework.
The SEC also approved rule updates allowing Nasdaq to roll out tokenized settlement options for Russell 1000 equities and major index-tracking ETFs, while work continues on broader digital asset innovation standards.
Why This Matters
As the central backbone of U.S. market clearing, the DTCC oversees more than $114 trillion in assets under custody. Its adoption of public-enterprise hybrid blockchains marks a decisive shift from experimental pilot programs to fully regulated, mainstream financial operations.
Dive into DailyCoin’s top crypto news today:
US Democrats Sweep Midterms: Bitcoin Back to $78K, Stock Market Wobbles
Social Security November Payments: Why Dates Shifted This Month