Société Générale stated that it has accepted $10 million in DTCC-tokenized U.S. Treasuries as collateral on the Canton Network. The transaction integrated these assets into the bank’s existing collateral and back-office systems, but the bank’s acceptance of these assets does not alter DTC’s valuation of tokenized securities in its own risk calculations.
Key points:
- Société Générale’s Prime Services & Clearing division accepted these tokenized government bonds.
- Securities held by DTC back these tokens on a 1:1 basis.
- Token transfers can be made 24/7, but conversions are limited to business hours on weekdays.
Société Générale accepts DTCC-tokenized Treasury bonds as collateral.
The line stated that its Prime Services & Clearing division accepted these assets on the Canton Network under Société Générale’s governance, risk, and control framework. Upon completing this transaction, the company advanced a plan announced in May to accept tokenized assets as collateral on Canton.
Société Générale stated that these securities were tokenized during the soft launch phase of the Depository Trust & Clearing Corporation's (DTCC) tokenization service. Accepting these assets enabled the integration of tokenized assets with the bank’s existing operational systems.
How does DTCC’s tokenization service work?
DTCC’s tokenization service launches on October 28, 2026, enabling eligible users to convert securities held in its custodial subsidiary, The Depository Trust Company (DTC), into tokenized representations.
DTCC’s service documentation states that these tokens are backed 1:1 by securities held by DTC, which is responsible for maintaining official ownership records. Transfers can only occur between DTC-registered wallets, not between unrestricted crypto wallets.
On supported blockchains, peer-to-peer transfers operate 24/7. Switching between tokens and traditional book-entry securities is limited to business hours from 2:00 AM to 6:00 PM Eastern Time, with a processing target of 15 minutes or less.
Banks handle risk differently than DTC.
Société Générale accepting tokenized U.S. Treasuries from DTCC as collateral does not alter DTC’s internal handling of these tokens. The bank’s acceptance arrangements are separate from the custodian’s risk calculations.
According to the no-action letter framework issued by the U.S. Securities and Exchange Commission (SEC) in December 2025, DTC does not assign collateral value or settlement value to tokenized securities in its own risk calculations. Société Générale accepts these assets under its existing bank-level governance and control framework, without altering that framework.
Continuous collateral circulation and on-chain financing
Société Générale stated that it plans to support ongoing collateral turnover and evaluate additional eligible tokenized securities. The bank also intends to explore on-chain repurchase financing, subject to approval and regulatory compliance.
The conditions it has set for further financing activities include internal approvals, regulatory requirements, and further development of the operational and control framework.
This article was generated with the assistance of artificial intelligence and reviewed by the editorial team.