DTCC Tokenization Service Operates on Two Blockchains, Plans 2027 Expansion

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On-chain news reveals that the DTCC tokenization service now operates on the Canton Network and DTCC’s private Besu network. Morgan Stanley has tokenized U.S. stocks and Treasury bonds through this service, creating tokenized "digital twins" of securities held by DTC. These tokens can be converted back into traditional assets while preserving ownership rights and protections. Twenty DTC-participating institutions, including Bank of America and JPMorgan Chase, have joined the service. A network upgrade is planned to support additional blockchains by 2027. In December 2025, the SEC issued a no-action letter permitting the tokenization of Russell 1000 components, major ETFs, and U.S. Treasuries.

Odaily Planet Daily reports that Morgan Stanley has tokenized U.S. equities and U.S. Treasuries through the tokenization services of the Depository Trust & Clearing Corporation (DTCC). The service converts DTCC-held securities into tokenized "digital twins," enabling seamless conversion between securities and tokens, while preserving original ownership rights, investor protections, and economic benefits.

DTCC’s tokenization service currently operates on the Canton Network and DTCC’s private Besu network, with plans to support additional blockchains by 2027. To date, 20 DTCC participant institutions have signed up to use the service, including Bank of America, Citigroup, JPMorgan Chase, Fidelity, Citadel Securities, and UBS; DTCC states that the service was developed with input from over 150 institutions.

The U.S. Securities and Exchange Commission (SEC) issued a no-action letter to DTC in December 2025, permitting it to tokenize Russell 1000 index components, major index ETFs, and U.S. Treasuries. (Decrypt)

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