The Depository Trust & Clearing Corporation (DTCC) has begun live production of its tokenization platform, taking a major step toward bringing traditional financial market infrastructure onto blockchain rails, the firm said Wednesday. The program will allow eligible securities to move between traditional and tokenized formats while retaining full legal rights.

The platform, operated through The Depository Trust Company (DTC), allows eligible real-world assets to be tokenized without altering the legal protections associated with conventionally held securities.

The initial rollout is being conducted in a controlled production environment for DTC participants and their clients to test the system under live market conditions while limiting broader market risks. The launch comes after industry testing involving more than 50 firms across the financial sector, including BlackRock, BNP Paribas, Citi, Goldman Sachs, JPMorgan, Morgan Stanley and State Street.

DTCC Digital Assets Global Head Nadine Chakar said the production launch is the first step in a long-term strategy to show that traditional and blockchain-based financial systems can coexist.

“We’re going to prove the value of tokenization, and hopefully build the foundation that will lead to a scalable launch come October,” she said.

The first basket includes Microsoft shares, Circle stock, major ETFs including QQQ and SPY, Treasury ETFs, and US government bonds. DTCC, which safeguards more than $114 trillion in securities, plans to officially launch the service in October, allowing firms to tokenize eligible securities held at the clearinghouse.

DTCC’s approach differs from tokenized stock wrappers by creating blockchain-native representations that are legally equivalent to the underlying securities. Token holders retain the same ownership, dividend, and governance rights, and the assets can be converted back into conventional securities. Settlement will take place on either Hyperledger Besu or the Canton Network.

“DTCC is bridging TradFi and DeFi so that the future of capital markets is built on the same infrastructure that has underpinned global financial markets for decades. Through the DTCC tokenization service, we have the opportunity for increased efficiency, deeper liquidity, and new ways to move and use assets,” Brian Steele, President of Clearing and Securities Services at DTCC, said.

The pilot comes amid growing adoption of tokenization across traditional finance and follows SEC clearance for DTCC’s service last year.