DTCC launches tokenisation service for regulated securities

DTCC has launched the DTCC Tokenisation Service through its Depository Trust Company subsidiary, creating tokenised representations of securities held at DTC.

The service allows market participants to convert eligible securities between traditional and tokenised forms and deliver them to digital wallets. It is intended to bring tokenised securities into regulated financial markets through DTC's existing market infrastructure.

DTC holds more than USD $114 trillion in assets under custody, linking the initiative to one of the largest pools of securities in market infrastructure. Tokenised securities created through the service are designed to retain the ownership rights, investor protections and economic entitlements of the underlying traditional securities.

Twenty DTC participants have signed agreements to access the service: Alpaca, Apex Clearing Corporation, Barclays, Bank of America, BNP Paribas, Brown Brothers Harriman, Citadel Securities, Citi, Clear Street, DriveWealth, Edward Jones, Fidelity Investments, Interchange Clearing, J.P. Morgan, Marex, Mirae Asset Securities, Morgan Stanley, State Street, UBS and Velocity Capital.

Users will be onboarded on a rolling basis. The early participants span banks, brokerages and market-making firms, suggesting broad interest from established securities businesses as tokenisation moves further into regulated markets.

Industry backing

The service was developed with input from more than 150 firms in DTCC's DTC Digital Assets Solutions Industry Working Group, which brought together firms from traditional finance and digital asset markets as the framework was built.

"Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure," said Frank La Salla, President and Chief Executive Officer of DTCC.

"By extending DTC's resiliency, governance and operational standards into digital markets, we are establishing the foundation for responsible institutional adoption at scale."

Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, said the level of engagement reflected a shift in market attitudes.

"The breadth of engagement across traditional finance and digital asset markets demonstrates that the industry is ready to move beyond experimentation and toward practical adoption.

"Working with more than 150 firms in our Industry Working Group, we built a service designed to support institutional use of tokenized securities at scale within a trusted operational framework."

Network model

The service uses a multi-network model intended to let firms transact across traditional and digital environments. This approach allows participants to move assets between the two settings while maintaining liquidity in traditional markets and extending activity into tokenised markets.

DTS is currently integrated with the Canton Network and DTCC's private Besu network. Additional blockchain networks are due to be added later.

DTCC has also assembled a wider group of collaborators and partners around the service, beyond the DTC participants that will access it directly. They include BitGo Bank & Trust, Blockdaemon, Broadridge, DFNS, DRW, Fireblocks, HIFI, Kaleido, Matter Labs, Ondo, Prometheum Capital, Talos, Taurus, Tradeweb, Transcend and Virtu.

The effort follows a period of regulatory engagement and testing. DTC received a no-action letter from the US Securities and Exchange Commission authorising it to tokenise Russell 1000 constituents, exchange-traded funds tracking major indices and US Treasury securities.

Several months later, DTCC and more than 30 firms completed initial limited-production trades and multiple on-chain transactions. Those tests formed part of the run-up to the live launch.

Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, said the launch was the result of coordination across the market.

"Today's launch demonstrates what can be achieved through sustained industry collaboration, regulatory engagement and a disciplined approach to innovation," said Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets.

"This is only the beginning of DTCC's ultimate goal to build the Web3 ecosystem of the future that bridges established, trusted market infrastructure and digital ledger technology."

In 2025, DTCC's subsidiaries processed securities transactions valued at USD $4.7 quadrillion, while its depository subsidiary provided custody and asset servicing for securities issues from more than 150 countries and territories valued at USD $114 trillion.