DTCC Flips the Switch on Tokenization, Backed by 150 Firms and $30T in Securities

The Depository Trust Company (DTC) went live with the DTCC Tokenization Service (DTS) on October 28, 2026. Eligible participants can now convert select custodied securities into tokenized digital versions. DTC calls them digital twins: each token carries the same CUSIP identifier, ownership rights and economic entitlements as the security underneath it.

This is not a solo build. More than 150 firms shaped the service through the DTC Digital Assets Solutions Industry Working Group. Twenty DTC participants signed on at launch, including J.P. Morgan, Citi and Bank of America. The dress rehearsal came on July 15, 2026, when over 30 firms ran limited-production trades.

At launch, DTS covers 34 securities, a mix of select Russell 1000 equities, prominent exchange-traded funds and US Treasuries. Together they represent approximately $30 trillion in market value. Tokens move between registered wallets around the clock across two networks: the Canton Network and DTCC's private Besu blockchain. There is a catch, though. Converting between tokenized and traditional forms still runs on business-day windows, creating a two-speed system participants will have to manage.

The regulatory runway came first. On December 11, 2025, the US Securities and Exchange Commission issued a No-Action Letter for the service, a signal it won't pursue enforcement over the activity if conditions hold. That relief lets DTC facilitate these offerings for three years on pre-approved blockchain networks.

DTC says the service should improve liquidity and capital efficiency while preserving its existing standards of resiliency and governance. The Canton Network's selection alongside DTCC's own Besu chain hands it a front-row seat in one of the biggest tokenization rollouts yet.

Next up, DTC plans to explore collateral utilization and digital cash settlement, plus additional blockchain networks beyond the current two. No specific additions have been named, and the 34-security scope is a deliberate starting point rather than a full market migration.