Big Banks Join DTCC Tokenized Securities Service

Wall Street Giant Connects Traditional Finance to Blockchain

Imagine taking traditional Wall Street investments and turning them into digital tokens that move across blockchains in seconds. That is exactly what the Depository Trust & Clearing Corporation (DTCC) is building.

The DTCC plays a massive role in global finance. Its subsidiary, the Depository Trust Company (DTC), oversees more than $114 trillion in securities in its custody operation.

Now, the financial powerhouse has launched its Digital Tokenization Service (DTS). This platform bridges the world of traditional stock market clearing with modern digital markets.

How Does the Digital Tokenization Service Work?

The new service allows eligible financial institutions to create digital representations of traditional securities held at the DTC. Think of these tokens as digital twins.

Firms can convert standard securities into tokens and send them to designated crypto wallets. Later, they can convert those tokens back into traditional assets whenever needed.

Crucially, the actual underlying securities remain inside DTC's secure infrastructure. Investors keep their legal ownership rights, economic benefits, and regulatory protections throughout the entire process.

It is important to clarify that DTCC is not moving its entire $114 trillion operation onto public blockchains overnight. Instead, it is creating a regulated pathway to tokenize specific assets on demand.

Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure.

That quote comes from Frank La Salla, the President and CEO of DTCC, highlighting the years of planning behind this milestone.

Wall Street Heavyweights Sign On

Major financial players are already jumping on board. Twenty DTC participants have signed agreements to start using the platform.

The list of participating firms includes some of the biggest names in global finance:

• JPMorgan
• Morgan Stanley
• Bank of America
• Barclays
• Citi
• Fidelity Investments
• UBS
• State Street
• BNP Paribas
• Citadel Securities
• Apex Clearing

More institutions are expected to join the service as it rolls out further across global markets.

The Technology Behind the Platform

To start, DTCC is connecting its service to two specific networks: the Canton NetworkCC-2.96% and DTCC's private Besu blockchain. Additional blockchain network integrations are scheduled for 2027.

This tech setup allows firms to jump between traditional market infrastructure and blockchain environments smoothly. They get the speed of modern networks without sacrificing traditional institutional protections.

DTCC did not build this in a vacuum. The firm collaborated with more than 150 companies through its Digital Assets Solutions Industry Working Group.

Key technology partners involved in the initiative include Fireblocks, BitGo, OndoONDO-0.36%, Broadridge, and Tradeweb.

For participating banks, the big benefit is efficiency. Assets can be moved as collateral in minutes rather than days, opening up fresh liquidity and making capital deployment far faster.

Regulatory Clearances and Future Outlook

This launch was made possible by regulatory progress. In December 2025, the U.S. Securities and Exchange Commission (SEC) issued a no-action letter.

That letter allowed DTC to tokenize specific assets. Approved assets included stocks in the Russell 1000 index, major index ETFs, and U.S. Treasury securities.

About seven months after getting the regulatory nod, DTCC and over 30 financial firms completed initial trial trades on-chain. Today, the project has transitioned from test trials into a live, operational institutional service.

While moving collateral in minutes is a huge leap forward, the real test lies ahead. Financial markets must now see whether institutions accustomed to legacy clearing processes adopt blockchain transfers at scale.

As adoption grows, institutional investors will continue weighing the operational benefits of tokenization against market volatility and emerging technology risks.