DTC develops tokenization service to bring traditional securities onchain

The Depository Trust Company, the entity that quietly handles the custody and clearing for virtually every stock trade in America, is building a tokenization service that would convert traditional securities into blockchain-native assets.

Think of it as creating a digital twin for every share of Apple or Treasury bill sitting in DTC’s vaults. The original security stays put, but a tokenized version gets minted and delivered to approved digital wallets, carrying all the same legal protections and entitlements as the real thing.

How DTC got the green light

The SEC issued a three-year No-Action Letter in December 2025, effectively giving DTC permission to proceed without fear of enforcement action.

The initial scope covers highly liquid securities: Russell 1000 stocks, major-index ETFs, and US Treasuries.

An industry consortium of over 50 firms contributed to the development process, ranging from traditional finance heavyweights to digital-native market participants.

First live trades already in the books

On July 15, 2026, more than 30 firms executed real-time trades using DTC-tokenized assets across two blockchain networks: Hyperledger Besu and the Canton network.

The full DTCC Tokenization Service is targeted for launch in October 2026. Beyond Besu and Canton, DTC plans to add Stellar integration by 2027.

The tokenized assets maintain CUSIP-based entitlements, the same identification system used for every security in the traditional market. It means a tokenized share still gets its dividends, still shows up in the same regulatory reporting, and still carries the same investor protections as one held through a conventional brokerage.

Built-in smart contract controls include mint, burn, pause, and clawback functionalities.

Why this is different from every other tokenization project

The architecture preserves DTC’s centralized ledger as the primary source of truth. Blockchain networks serve as distribution rails, not replacements. If there’s ever a discrepancy between the onchain token and DTC’s books, DTC’s books win.

What this means for the market

The current T+1 settlement standard, which only took effect in 2024 after decades of T+2, could be rendered quaint if tokenized securities settle atomically onchain.

The multi-chain approach supports Hyperledger Besu, Canton, and eventually Stellar, positioning DTC as a chain-agnostic issuer across the networks where institutions want to operate.