DTCC Launches Tokenization Service With 150-Firm Input

The Depository Trust Company launched its DTCC Tokenization Service on October 28, 2026, letting participants convert select custodied securities into blockchain-based tokens backed by more than 150 firms' worth of industry input. Twenty DTC participants signed on at launch, including J.P. Morgan, Citi and Bank of America.

The service, known as DTS, does one specific thing. It turns eligible securities held in DTC custody into what the company calls "digital twins" — tokenized versions that mirror the original instrument exactly. Each token matches its underlying security on the CUSIP identifier, the standard code that tags a specific security, and carries the same ownership rights and economic entitlements.

This is market infrastructure, not a startup experiment. The plumbing of US securities markets now runs partly on blockchain.

What does the service actually cover?

At launch, DTS supports 34 securities. The list includes:

• Select Russell 1000 equities
• Prominent exchange-traded funds
• US Treasuries

Those 34 securities represent approximately $30 trillion in market value, according to DTC.

The tokens move between registered wallets around the clock, 24/7. Transfers run on two networks: the Canton Network and DTCC's private Besu blockchain.

There is a catch, and it matters operationally. Converting between tokenized and traditional forms still follows business-day windows. That split creates a two-speed system participants will need to manage — a token can move on a Sunday, but redeeming it into traditional form waits for Monday.

How did it get regulatory clearance?

The groundwork came first. On December 11, 2025, the US Securities and Exchange Commission issued a No-Action Letter covering the service — a formal signal that the agency will not pursue enforcement over a specific activity, provided conditions are met. This letter lets DTC facilitate the offerings for a three-year period on pre-approved blockchain networks.

Then came the dress rehearsal. On July 15, 2026, more than 30 firms took part in limited-production trades ahead of the full launch.

Industry input ran through the DTC Digital Assets Solutions Industry Working Group, the forum where the 150-plus firms shaped how the service works in practice.

Why is 24/7 transfer the headline feature?

Traditional markets run on a fixed schedule. Tokenized transfers on DTS do not. DTC expects the service to improve liquidity and capital efficiency, and says it is designed to preserve its existing standards of resiliency and governance.

For institutions, the practical upside may show up first in collateral. DTC's future plans include exploring collateral utilization and digital cash settlement — areas where round-the-clock token mobility could change how firms manage margin and funding positions.

The choice of Canton Network is worth watching on its own. Its selection alongside DTCC's own Besu chain gives it a front-row role in one of the most consequential tokenization deployments to date, and a foothold in US securities infrastructure that competing networks do not yet have.

What are the open questions?

The scope is deliberately narrow. Thirty-four securities is a starting point, not a full migration of the market. DTC also plans to explore additional blockchain networks, which could widen the field beyond the two current chains, though no specific additions have been named.

Twenty participants at launch is a solid opening roster, but the service's value grows with every additional firm holding registered wallets — network effects will decide whether DTS becomes standard infrastructure or a niche rail.

The regulatory clock is already running. The SEC's no-action relief covers a three-year period, giving DTC a defined window to prove the model works before the question of permanent regulatory treatment comes back around in late 2028.