DTCC prepares to tokenize $30 trillion in assets across 25 securities

The Depository Trust & Clearing Corporation (DTCC) is preparing to launch its Tokenization Service this month after more than 30 financial institutions and digital asset firms participated in production trades using tokenized securities.

The test, which took place in mid-July, involved assets held at The Depository Trust Company (DTC) and covered use cases including collateral pledges, securities lending, Treasury repo transactions, equity trades and central counterparty margin workflows.

The initiative follows an SEC no-action letter issued seven months earlier authorizing DTC to operate the service for assets it custodies.

More than 50 firms are involved in DTCC’s tokenization effort, while its industry working group has attracted more than 100 members and partners.

What to expect at launch

The service is set to offer 25 securities for tokenization at launch, covering an estimated $30 trillion in assets, according to DTCC. Initial eligible assets will include selected Russell 1000 equities, ETFs and US Treasury bills, notes and bonds.

Each token will be backed by securities held at DTC and retain the same CUSIP and investor protections as its traditional counterpart.

Canton Network and DTCC’s private Besu network are scheduled to be available at launch, while Stellar and Circle’s Arc are anticipated additions in 2027.

Participants will be able to submit conversion orders through a user interface or API during business-day operating hours, with DTCC targeting processing times of 15 minutes or less.

Once assets are tokenized, registered wallets will be able to transfer them peer to peer around the clock, subject to compliance restrictions.

DTC will retain the official books and records, and Treasury servicing will support distributions and maturities, with payments made in fiat to participants’ traditional accounts.

Longer-term plans include expanded corporate-action servicing, consolidated records of book-entry and on-chain positions, and settlement and collateral capabilities such as on-chain netting and digital cash.