The Depository Trust Company, a DTCC subsidiary, launched the DTCC Tokenization Service on October 28, 2026. The service mints tokenized versions of securities that DTC already holds in custody. DTC safeguards more than $114 trillion in assets, so the potential scale far exceeds any earlier tokenization program. However, the service starts with a narrow asset list and a small group of users. Eligible participants can now convert supported securities between their traditional and tokenized forms. They can also deliver the tokens to digital wallets they choose.
The launch matters because the operator is the core settlement utility of the US market. Most tokenization projects so far came from startups, asset managers, or individual banks. In contrast, DTC already sits underneath most US equity and bond settlement. As a result, tokens issued here connect directly to the records that define legal ownership. DTCC CEO Frank La Salla said the day marks the culmination of years of work to bring tokenized securities into a regulated framework. Nadine Chakar, who leads DTCC Digital Assets, added that the launch is only the beginning of the firm’s goal to build the Web3 ecosystem of the future.
The DTCC Tokenization Service is now live, and this is only the beginning. Explore the service: https://t.co/3sW0L9UTxy https://t.co/0wjLHI078F
— Depository Trust & Clearing Corporation (@The_DTCC) October 28, 2026
Who Signed Up for Access
Twenty DTC Participants have signed agreements to use the service, and DTCC says more will join on a rolling basis. The list covers the largest US banks, including J.P. Morgan, Bank of America, Citi, and Morgan Stanley. Additionally, custody and asset servicing leaders such as State Street and Brown Brothers Harriman signed on. Fidelity Investments and Edward Jones represent the retail and wealth side of the market. Meanwhile, Barclays, BNP Paribas, and UBS bring a strong European presence.
The group also includes firms that built their businesses around speed and new technology. Citadel Securities and Marex represent market making and trading. Apex Clearing, Clear Street, and Interchange Clearing cover clearing and prime services. Alpaca and DriveWealth supply brokerage infrastructure that fintech apps use to reach customers. Finally, Mirae Asset Securities (USA) and Velocity Capital complete the list. This mix shows that demand extends well beyond the biggest banks.
How a Digital Twin Works
DTCC describes each tokenized security as a digital twin of an asset held at DTC. The token carries the same ownership rights, investor protections, and economic entitlements as the traditional position. Holders therefore keep dividends, corporate actions, and legal claims. The tokens do not create a separate class of security. Instead, they give the same asset a form that blockchain networks can move.
The design keeps the existing custody chain intact. According to law firm Morgan Lewis, the tokenized securities remain registered to DTC’s nominee, Cede & Co. That structure preserves protections under Article 8 of the Uniform Commercial Code. Importantly, users can move assets back from token form to the traditional record. DTCC built this two-way conversion so that firms never lose access to normal settlement channels.
Canton and Besu Anchor the Multi-Chain Plan
The service launches on two networks. Canton Network is a public network from Digital Asset, and Besu is DTCC’s private network. DTCC tested both during live production trades on July 15, 2026. More than 30 firms took part, including Goldman Sachs, J.P. Morgan, BlackRock, Citadel Securities, Nasdaq, NYSE, Vanguard, and Circle. The test covered collateral pledges, securities lending, Treasury repo, equity delivery versus payment, and central counterparty margin workflows.
Those workflows show where DTCC expects tokenization to pay off first. Collateral mobility and repo depend on moving assets quickly between counterparties. Tokens that settle onchain can shorten that cycle and support activity outside normal market hours. Moreover, smart contracts can automate steps that staff handle manually today. DTCC also leaves the door open to more chains. In May, it announced that DTC-tokenized assets will arrive on Stellar in the first half of 2027. The launch release adds that further networks will follow in 2027.
The Ecosystem and the Guardrails
DTCC did not build the service alone. More than 150 firms in the DTC Digital Assets Solutions Industry Working Group gave input. Wallet and custody providers including BitGo, Fireblocks, and Taurus support the launch. Broadridge, Ondo, Tradeweb, and Virtu also collaborated on the rollout. Consequently, participants can plug the service into tools they already use.
Regulation still sets firm limits. The SEC staff issued DTC a no-action letter on December 11, 2025, and it runs for three years. It covers only Russell 1000 stocks, ETFs tracking major indices, and US Treasury bills, notes, and bonds. Morgan Lewis notes that the letter does not create a general framework for tokenized securities. It also does not extend relief to other firms that want to run similar services. Furthermore, issuers cannot request tokenization on their own, because only DTC Participants hold that access.
What to Watch Next
The first test is adoption. Twenty signed firms is a start, yet the rolling onboarding will show how quickly volume grows. Observers should also track which chains join in 2027 and how liquidity develops across them. Additionally, the three-year window of the no-action letter pushes DTCC and the SEC toward a permanent framework. For crypto readers, the key shift is who now sets the pace. The largest custodian in US markets has put tokenized securities into production, and the rest of the industry now has a regulated route to follow.
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