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DTCC launches tokenization service on Canton and Besu

DTCC launched a service for tokenized DTC-custodied securities across Canton and Besu, with 20 firms signed on and a 2027 network expansion ahead.

The Top Crypto Editors 2 min read

DTCC launches tokenization service on Canton and Besu

Can securities held at DTC now move on blockchain rails? Yes: The Depository Trust Company, DTCC’s subsidiary, launched its Tokenization Service on Oct. 28, bringing tokenized representations of DTC-custodied securities to the Canton Network and DTCC’s private Besu network. The DTCC launch announcement says the service is designed to connect digital ledger technology with regulated market infrastructure and support liquidity and collateral mobility.

Which securities can the service tokenize?

The launch supports selected Russell 1000 stocks, index-tracking exchange-traded funds and U.S. Treasury securities. CoinDesk reported on the launch that 34 securities are eligible, representing about $30 trillion in market value, citing a DTCC spokesperson. That is an eligible set, not a claim that all securities held at DTC are available for tokenization.

What does a token represent, and who can use it?

DTS creates tokenized entitlements to assets already held at DTC; the tokens are not substitutes for custody of the underlying securities. DTCC says those entitlements can be converted between traditional and tokenized forms and delivered to users’ digital wallets, while retaining the rights, investor protections and economic entitlements of their traditional counterparts. The service keeps official ownership records with DTC, and tokens can move between registered wallets around the clock, subject to compliance restrictions. CoinDesk reported DTCC is targeting processing times of 15 minutes or less for eligible firms’ conversions.

How much institutional access is in place?

Twenty DTC participants have signed agreements to access the service, including Bank of America, Citi, Fidelity Investments, J.P. Morgan, Morgan Stanley and UBS. DTCC says more than 150 firms contributed to the industry working group that helped develop the service. That gives the launch a defined initial network of participants and securities, while the infrastructure remains connected to DTC’s existing custody and ownership records. The next milestone to watch is DTCC’s planned addition of further blockchain networks in 2027.

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