DTCC launches tokenization service with 20 firms, incl. JPMorgan

Key points

• DTCC's tokenization service went live on Canton Network and a private Besu chain
• 20 firms have signed up, including JPMorgan, Citi and Morgan Stanley
• 34 eligible securities worth about $30 trillion, per DTCC's site via CoinDesk
• Stellar and Circle's Arc are planned for 2027

The Depository Trust & Clearing Corporation (DTCC) put its tokenization service into live operation on Wednesday, bringing tokenized versions of securities held at its depository onto blockchain networks. Twenty firms have signed agreements to use the service, according to CoinDesk, which said DTCC’s website lists 34 eligible securities representing about $30 trillion in market value.

DTCC announced the launch in a press release dated October 27, CoinDesk and Cointelegraph reported.

How the DTCC tokenization service works

The service runs on the Canton Network and on DTCC’s private Besu blockchain. Per CoinDesk, tokens are backed one-for-one by securities held at the Depository Trust Company (DTC), a DTCC subsidiary. DTC continues to keep the official ownership records. Tokens can move between registered wallets around the clock, subject to compliance restrictions.

Eligible firms convert securities into tokens during business hours, with a processing target of 15 minutes or less, CoinDesk reported. Cointelegraph said the tokenized form carries the same ownership rights and investor protections as the traditional one.

Initial assets include select large-cap stocks from the Russell 1000, exchange-traded funds, and U.S. Treasury bills, notes and bonds, according to CoinDesk. DTC holds more than $114 trillion in securities, both outlets reported.

Who has signed up

CoinDesk named Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street and UBS among the 20 participants. Cointelegraph listed Alpaca, Clear Street, DriveWealth and Interchange Clearing, along with Citadel Securities, Citi, Fidelity and JPMorgan.

CoinDesk quoted DTCC CEO Frank La Salla as calling the launch the “culmination of years of work to bring tokenized securities into a regulated framework.”

Regulatory basis and what comes next

The launch follows a December 2025 no-action letter from the Securities and Exchange Commission, which allowed DTC to tokenize a defined set of securities. Cointelegraph described the letter as saying the SEC would not recommend enforcement action over the proposed program. Cointelegraph also noted that in May DTCC said it planned a full launch in October 2026 after a July pilot.

DTCC plans to add more networks in 2027, according to both outlets. CoinDesk said these include Stellar and Circle’s Arc blockchain, along with tools for settling transactions with digital cash and using tokenized securities as collateral.

The move comes as other market operators build similar infrastructure. CoinDesk reported that Nasdaq and the New York Stock Exchange are developing tokenized securities trading systems, and that Intercontinental Exchange is set to run a blockchain-based venue with OKX under the SEC’s innovation exemption. CoinDesk also cited Citi analysts projecting that tokenized securities could become a $5.5 trillion market by 2030.