DTCC to tokenise US Treasuries with Digital Asset, Canton

DTCC has formed a partnership with Digital Asset and the Canton Network on plans to tokenise a subset of US Treasury securities held in custody at The Depository Trust Company.

The initiative marks an early stage in DTCC's wider plans to make DTC-custodied assets available on-chain. DTCC said it will use its ComposerX suite of platforms for tokenisation of DTC-custodied US Treasury securities on the Canton Network.

The organisations said they are working towards a minimum viable product in a controlled production environment in the first half of 2026. They said they plan to expand the size and scope of the project in the months that follow, based on client interest.

DTCC said the work follows DTC's recent receipt of a No-Action Letter from the US Securities and Exchange Commission regarding a new service for tokenising real-world assets held at DTC.

DTCC described the partnership as a step in a multi-year roadmap that starts with US Treasury securities. It said the roadmap could later extend to other DTC-eligible assets and other network providers.

"DTCC's partnership with Digital Asset and the Canton Network is a strategic step forward as we collaborate across the industry to build a digital infrastructure that seamlessly bridges the traditional and digital financial ecosystems and provides unmatched scalability and safety," said Frank La Salla, Chief Executive Officer, DTCC.

MVP Plans

DTCC said the first phase will focus on tokenising a subset of US Treasury securities that DTC holds in custody. The organisations positioned the early stage as an MVP and a controlled production deployment rather than a broad rollout.

The Canton Network is a blockchain network designed for regulated financial markets, according to the organisations involved. Digital Asset is a technology provider and a contributor to the Canton Network.

"This partnership reflects the collective ambition of leading market participants to create future-proof, interoperable financial ecosystems," said Yuval Rooz, Co-Founder and Chief Executive Officer, Digital Asset.

DTCC said it expects tokenised securities to attract interest from a range of market participants. It cited potential efficiencies for firms such as market makers and hedge funds. DTCC said it expects changes in operational processes and capital usage as tokenised instruments become more common.

The company also linked the initiative to prior experiments. DTCC said the effort builds on its earlier collateral mobility experiment.

Operational Focus

DTCC framed the first phase around access to digitised financial instruments in a secure and regulated environment. It described the project as phased and said the structure would allow flexibility for participants while maintaining regulatory requirements.

DTCC said the work relates to its strategy on an interoperable digital asset ecosystem across network providers. It also emphasised resilience and safety for traditional market functions.

"Our goal is to enable the industry and DTC Participants to take advantage of tokenization capabilities that enhance liquidity, operational efficiency and market transparency. We welcome the opportunity to partner with Digital Asset and the Canton Network to bring this first, production environment activity live," stated Brian Steele, Managing Director, President, Clearing & Securities Services at DTCC.

DTCC said tokenised securities could change how firms handle processing steps and risk controls across trading and post-trade workflows. It said adoption could lead to operational and financial efficiencies across market participants. DTCC also pointed to a potential effect on balance sheets through capital efficiency.

"This partnership reflects the collective ambition of leading market participants to create future-proof, interoperable financial ecosystems," said Rooz.

Canton Governance

Alongside the tokenisation work, DTCC said it will take a leadership role in the decentralised governance structure of the Canton Network. It said it will join the Canton Foundation as co-chair alongside Euroclear.

DTCC said the governance role will involve participation in setting standards for decentralised financial infrastructure. It linked that effort to its broader digital asset strategy and the expanding set of on-chain market infrastructure projects.

"DTCC's partnership with Digital Asset and the Canton Network is a strategic step forward as we collaborate across the industry to build a digital infrastructure that seamlessly bridges the traditional and digital financial ecosystems and provides unmatched scalability and safety," said La Salla.

The organisations said they expect the partnership roadmap to unfold over multiple years, with early work centred on US Treasury securities and later expansion to other DTC-eligible assets.