DTCC launches its securities tokenization service with 34 assets, enabling faster blockchain transfers while preserving traditional ownership rights and investor protections.
The Depository Trust and Clearing Corporation (DTCC) has launched its securities tokenization service, initially supporting 34 traditional financial assets. The service connects selected stocks, exchange-traded funds (ETFs) and U.S. Treasuries to blockchain networks without altering their ownership rights.
The launch marks an important step toward connecting traditional financial markets with blockchain technology. Furthermore, eligible investors can move tokenized securities between registered digital wallets 24/7 via the service.
DTCC’s market infrastructure handles over $114 trillion in assets. Hence, its transfer might enable financial institutions to embrace blockchain technology in a regulated environment.
DTCC Introduces Blockchain-Based Securities Transfers
The new service will enable eligible users to generate digital tokens for securities held by the Depository Trust Company (DTC). Every token is 1:1 backed by the traditional security it represents, which is in the custody of the company.
As a result, the legal rights, economic benefits and investor protections of traditional securities remain unchanged for token holders. The tokens also keep their existing Committee on Uniform Securities Identification Procedures (CUSIP) identifiers.
Read more: Tokenized Assets in 2026: Who Is Launching What, and Why It Matters – Ledger Tribune
The service starts with 34 eligible securities from a select group of large companies in the Russell 1000 index. It also covers the large ETFs and U.S. Treasury bills, notes, and bonds.
These digital assets are not like regular cryptocurrency tokens, but rather are linked to securities that exist in the regulated financial system. The system thus seeks to integrate blockchain transfers with existing investor and institution protection measures.
DTCC President and CEO Frank La Salla said the launch was the result of years of effort. He said the service builds on DTC’s operational standards, governance and reliability to digital markets.
In addition, the service is designed to decrease the time required for the traditional securities settlement process. Most stock trades in the U.S. are now T+1, which means they settle one business day after the trade.
The tokenization service will enable the transfer of a token between registered wallets, thereby settling the tokenized position. This means that eligible transfers may occur prior to the customary T+1 settlement period.
This benefit is only valid for transfers between the same supported blockchain network, however. There is extra processing involved in moving assets from one network to another or changing their traditional and tokenized format.
Supported Networks and 24-Hour Transfer Limits
DTCC’s tokenization service is available at launch on the Canton Network and its private network running on Hyperledger Besu. These networks are the first to offer the necessary infrastructure to manage tokenized securities in a controlled environment.
Furthermore, DTCC intends to increase its support of blockchain in the first half of 2027. The planned additions are the Stellar and Circle’s Arc network, providing institutions with additional choices in managing tokenized assets.
It offers peer-to-peer transfers between registered wallets, 24/7. However, tokens can’t be easily transferred between any wallets due to the registration process.
DTCC participants are able to register third-party wallets for their clients through a dedicated user interface. This process enables to keep the controls on who can receive and transfer tokenized securities.
There are also variations in the hours of operation for cross-chain transfers. DTCC’s conversion service runs from 2:00 a.m. to 6:00 p.m. Eastern Time on business days.
So, 24 hours does not imply that all the service features are running all the time. Users are responsible for taking these restrictions into account when transferring assets between networks or when converting securities from traditional to tokenized or vice versa.
It is run under a three-year no-action letter issued by the U.S. Securities and Exchange Commission (SEC) in December 2025. This regulatory structure offers a clear structure for the first operations of the service.
Major Financial Institutions Prepare for Tokenization
Major financial companies and digital asset infrastructure providers are participating in DTCC’s rollout. Institutional participants reported include Bank of America, Barclays, Citi, Fidelity Investments, J.P. Morgan and Morgan Stanley.
Also, Alpaca is one of the companies that is part of the initial rollout. Infrastructure and wallet partners are BitGo Bank & Trust, Blockdaemon, Fireblocks, HashKey, Kaleido, Prometheum Capital, Talos and Tradeweb.
The participants have experience in banking, brokerage services, digital wallets and financial market technology. Their participation might enable institutions to examine tokenized securities in their current financial systems.
In the meantime, tokenization may facilitate the transfer and use of some assets as collateral. Financial institutions might be able to respond more quickly if they can move assets faster when they need to provide or manage assets.
Adoption will be contingent on regulatory requirements, network access, and institutional demand, however. The first service also only includes 34 securities that qualify for the service, not the entire U.S. securities market.
In general, DTCC’s launch links the two worlds of securities custody and blockchain-based transfers. The growth of its expansion plans and institutional involvement will shape the extent to which tokenized securities will grow in financial markets.
Bilal Hassan is a seasoned crypto journalist with over five years of experience covering blockchain, digital assets, and global fintech trends. His work focuses on market developments, regulatory shifts, and the evolving landscape of cryptocurrency adoption worldwide.
