DTCC Launches Tokenization Service for Financial Markets

The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), launches its DTCC Tokenization Service (DTS), marking a significant step toward integrating digital assets into regulated financial markets. The new service aims to improve asset mobility, expand liquidity opportunities, and enable investors to transfer collateral more efficiently through established financial infrastructure.  Through DTS, eligible participants can create tokenized representations of real-world assets held at DTC. 

Moreover, the service allows users to convert securities entitlements between traditional and tokenized formats and deliver them to their preferred digital wallets. These digital representations, commonly known as digital twins, preserve the ownership rights, investor protections, and economic entitlements associated with conventional securities. DTC currently holds more than $114 trillion in assets under custody.  

Frank La Salla, President and CEO of DTCC, said, “Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure.” He added that extending DTC’s operational standards and governance into digital markets would establish a foundation for responsible institutional adoption.  

DTCC Launches Tokenization Service for Regulated Financial Markets

Meanwhile, 20 DTC participants have signed agreements to access the service. These institutions include Bank of America, Barclays, BNP Paribas, Citigroup, JPMorgan, Morgan Stanley, UBS, Fidelity Investments, and State Street. DTCC will onboard additional participants on a rolling basis as adoption expands.  According to Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, industry participation reflects growing readiness for practical tokenization. 

He said, “The breadth of engagement across traditional finance and digital asset markets demonstrates that the industry is ready to move beyond experimentation and toward practical adoption.”  Furthermore, DTS uses an interoperable, multi-network model that connects traditional financial markets with digital asset infrastructure. The service currently supports the Canton Network and DTCC’s private Besu network, while DTCC plans to introduce additional blockchain networks in 2027. Its broader ecosystem includes wallet providers, technology companies, and digital asset firms working to strengthen connectivity.  

Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, described the launch as the result of sustained collaboration, regulatory engagement, and disciplined innovation. She stated, “This is only the beginning of DTCC’s ultimate goal to build the Web3 ecosystem of the future.”  The launch follows the U.S. Securities and Exchange Commission’s December 2025 No-Action Letter, which authorized DTC to tokenize Russell 1000 constituents, major index-tracking exchange-traded funds, and U.S. Treasury securities. Subsequently, DTCC and more than 30 firms completed initial limited-production trades and multiple on-chain transactions, helping validate the service’s practical applications.

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