The Depository Trust & Clearing Corporation launched a tokenization service for US securities on a private blockchain and the Canton Network, making digital asset infrastructure available for 34 assets valued at approximately $30 trillion, btc-echo.de reported. Twenty major financial institutions participate in the initial rollout, including JPMorgan, Citi, and Morgan Stanley.
The launch brings distributed ledger technology directly into the infrastructure of a major player on Wall Street. The Depository Trust & Clearing Corporation operates as a core market infrastructure provider for the United States financial system, holding more than $114 trillion in securities through its subsidiary networks.
The initial offering includes selected equities from the Russell 1000 index, exchange-traded funds, and United States Treasury securities. Each digital token is backed by a security deposited with the Depository Trust Company, a subsidiary of the Depository Trust & Clearing Corporation, which maintains the official ownership registers.
Participating institutions can tokenize securities during standard business hours through a process that the Depository Trust & Clearing Corporation aims to complete within a maximum of 15 minutes. Registered wallets can transfer the resulting tokens around the clock without altering underlying ownership rights.
Financial institutions and future blockchain expansions
Additional agreements for the service involve Bank of America, Barclays, Fidelity Investments, State Street, and UBS. The Depository Trust & Clearing Corporation scheduled an expansion of the platform to support Stellar and Circle’s Arc Blockchain by 2027. Future phases aim to permit the use of tokenized securities as collateral and to settle transactions using digital currency.
Previous tokenization efforts across the financial sector largely consisted of isolated pilot programs and blockchain projects of large financial institutions. The entry of the Depository Trust & Clearing Corporation integrates the technology directly into the infrastructure of a major player on Wall Street.
DTCC's new tokenization service keeps the custodian in place. The tokens are entitlements to securities that stay at DTC, and the first 20 users include J.P. Morgan, Citi, and State Street. The change is in collateral speed, which DTCC says can now be mobilized within minutes.… https://t.co/7clIPbbjd2
Frequently asked questions about the DTCC tokenization service
Which specific assets are available in the initial launch?
The initial service offers 34 assets valued at roughly $30 trillion, including selected equities from the Russell 1000 index, exchange-traded funds, and United States Treasury securities.
Which blockchain networks support the new infrastructure?
The platform runs on a private blockchain and the Canton Network for its initial release, with plans to expand integration to Stellar and Circle’s Arc Blockchain in 2027.
How does the clearing corporation ensure ownership tracking for tokenized assets?
Each token is fully backed by a security held at the Depository Trust Company, where official ownership records continue to reside.
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