DTCC has launched its tokenization service on the Canton Network and its private Besu blockchain. Twenty firms, including JPMorgan, Citi and Morgan Stanley, have signed agreements to access it. The service covers select stocks, ETFs and U.S. Treasuries.
The Depository Trust & Clearing Corporation (DTCC) went live with its tokenization service on Wednesday, a step toward putting stocks, bonds and funds on blockchain infrastructure. The service runs on the Canton Network and DTCC's private Besu blockchain.
34 securities eligible at launch
The service initially supports select large-cap stocks from the Russell 1000 index, exchange-traded funds and U.S. Treasury bills, notes and bonds. A DTCC spokesperson told CoinDesk that 34 securities are eligible at launch, representing approximately $30 trillion in market value.
DTCC sits at the center of U.S. securities markets, and its depository holds more than $114 trillion in securities. Because of that position, the launch connects tokenization to the infrastructure that already handles clearing, settlement and custody.
How the tokens work
The tokens are backed one-for-one by securities held at DTCC subsidiary Depository Trust Company and can move between registered wallets around the clock. Eligible firms can convert securities into tokens during business hours, and DTCC is targeting processing times of 15 minutes or less.
DTC keeps the official ownership records as tokens move. CoinDesk reports that this sets the approach apart from synthetic stock tokens, which track share prices without granting ownership of the underlying securities.
According to DTCC President and CEO Frank La Salla: "we are establishing the foundation for responsible institutional adoption at scale."
Banks sign up, more chains planned
Twenty participants have signed agreements to access the service, including Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street and UBS. DTCC said more firms will join over time.
The road map adds Stellar and Circle Internet's Arc blockchain next year, along with tools for settling transactions with digital cash. Cointelegraph reports plans to add more blockchain networks in 2027. Citi analysts projected that tokenized securities will become a $5.5 trillion market by 2030.
Sources: CoinDesk, Cointelegraph
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