DTCC launches tokenization service with input from 150 firms

The plumbing of US securities markets now runs partly on blockchain.

The Depository Trust Company (DTC) launched the DTCC Tokenization Service (DTS) on October 28, 2026. Eligible participants can now convert select securities held in custody into tokenized digital versions.

This did not come from a garage startup. More than 150 firms helped shape the service, and 20 DTC participants signed on at launch, including J.P. Morgan, Citi, and Bank of America.

What the service actually does

Think of the tokens as a mirror image of the original security, not a cousin or a knockoff. DTC calls them “digital twins.”

Each token matches its underlying security on the CUSIP identifier, the standard code that tags a specific security. It also carries the same ownership rights and economic entitlements.

At launch, DTS supported 34 securities. The list includes select Russell 1000 equities, prominent exchange-traded funds, and US Treasuries.

Those 34 securities represent approximately $30 trillion in market value.

The tokens can 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. Converting between tokenized and traditional forms still follows business-day windows.

How it got here

The regulatory groundwork came first. On December 11, 2025, the US Securities and Exchange Commission issued a No-Action Letter covering the service.

A no-action letter is the SEC signaling it won’t pursue enforcement over a specific activity, provided the conditions are met. This one let DTC facilitate these 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.

The industry input ran through the DTC Digital Assets Solutions Industry Working Group. That is where the 150-plus firms weighed in on how the service should work.

Why the 24/7 piece is 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.

DTC also says the service is meant to preserve its existing standards of resiliency and governance.

What this means for markets and the tokenization race

The choice of the Canton Network is worth watching. Its selection alongside DTCC’s own Besu chain gives it a front-row role in one of the most consequential tokenization deployments to date.

For institutions, the practical upside may show up first in collateral. DTC’s future plans include exploring collateral utilization and digital cash settlement.

DTC also plans to explore additional blockchain networks. That could widen the field beyond the two current chains, though no specific additions have been named.

The risks and open questions

The no-action relief covers a three-year period. That gives DTC a defined window to prove the model works before the regulatory question comes back around.

The scope is also narrow for now. Thirty-four securities is a deliberate starting point, not a full migration of the market.

The split between 24/7 transfers and business-day conversions creates a two-speed system. Participants will need to manage the gap between when a token can move and when it can be redeemed into its traditional form.

Twenty participants at launch is a solid opening roster, but the service’s value grows with every additional firm holding registered wallets.