DTCC Tokenization Service Goes Live With 20 Participants and 34 Eligible Securities

The DTCC launched its Tokenization Service on 28 October 2026, following an SEC no-action letter granted in December 2025. At launch, 34 securities are eligible across equities, Treasuries, and ETFs, though the no-action letter covers a substantially wider universe: the full Russell 1000, US Treasuries, and major index ETFs representing roughly $30 trillion of the more than $114 trillion the DTC holds in custody. Tokenised positions carry the same ownership rights as conventional street-name holdings and share the same CUSIP identifiers.

Twenty DTC Participants have signed up at launch, including JP Morgan, Citi, Bank of America, Barclays, BNP Paribas, UBS, Morgan Stanley, State Street, Fidelity, Edward Jones, Apex, DriveWealth, Clear Street, Alpaca, and Velocity Capital. Notable absences include BNY, the largest custodian, and Goldman Sachs, both of which participated in July’s live trials. The service operates on a Besu-based private distributed ledger alongside the Canton Network, with Stellar and Circle‘s Arc expected to join later. Participants can register selected third-party client wallets through a user interface, and further onboarding will occur on a rolling basis.

The headline capability is 24/7 intrachain transfer: when a tokenised position moves between registered wallets on the same chain, settlement is instantaneous with no T+1 lag. Cross-chain movement and conversion between tokenised and conventional form run through DTC’s conversion service, which operates 2am to 6pm ET on business days, constraining true round-the-clock use in the near term. Settlement arrangements between participants remain the responsibility of the parties themselves for now, though the DTCC’s roadmap includes on-chain cash netting and the group has previously indicated it is exploring stablecoins and tokenised deposits for settlement purposes.

How use cases develop is an open question. Traditional finance participants appear most immediately attracted to 24/7 collateral movement, while crypto-adjacent launch participants such as Alpaca, alongside named collaborator Ondo, point toward wrapped-token applications. Trading could emerge through alternative trading system venues or tokenised securities venues operating under the SEC’s innovation exemption, though the first such venue planning to launch on Canton, TSV LLC, intends to support only issuer-sponsored tokens rather than third-party tokens like the DTCC’s.