DTCC Processes First Live Tokenisation Transactions With JP Morgan, CME, and BNP Paribas

The Depository Trust & Clearing Corporation (DTCC) has moved tokenisation from controlled testing into limited live production, with JP Morgan executing the first conversion of Invesco’s QQQ exchange-traded fund (ETF) from conventional to tokenised form. The milestone follows a no-action letter the Securities and Exchange Commission (SEC) issued to the DTC in December 2025, permitting tokenisation of Russell 1000 equities, ETFs, and US Treasuries. A 50-strong industry working group was assembled in May, and a full commercial rollout remains scheduled for October.

Beyond straight conversions, the initial transactions demonstrated several use cases with material implications for collateral and funding markets. JP Morgan posted tokenised securities as margin at the CME Group; Societe Generale posted tokenised Treasuries as collateral with Citadel Securities; and Citadel Securities participated in a securities lending transaction with BNP Paribas. The combination suggests the infrastructure is being stress-tested across margin, collateral, and lending functions simultaneously rather than sequentially.

A widely held assumption that all transfers of DTCC-tokenised securities must settle through DTCC’s existing T+1 post-trade infrastructure is incorrect. Real-time direct transfers between parties are possible without routing through DTCC, provided every wallet involved appears on an approved allow list. This first phase appears to involve primarily DTCC clearing members, but the design anticipates clearing members eventually adding their clients’ wallets, which could extend tokenised stock holding to any US retail investor whose broker opts in.