DTCC Tokenization Service Runs on Two Blockchains, Plans 2027 Expansion

Odaily reports: Morgan Stanley has tokenized U.S. equities and U.S. Treasuries through the tokenization service of the U.S. Depository Trust & Clearing Corporation (DTCC). The service converts DTC-custodied securities into tokenized "digital twins" that can be converted between securities and tokens, with the tokens retaining the original ownership rights, investor protections, and economic entitlements.

The DTCC tokenization service currently runs on the Canton Network and DTCC's private Besu network, with plans to support more blockchains in 2027. To date, 20 DTC participating institutions have signed on to adopt the service, including Bank of America, Citigroup, JPMorgan Chase, Fidelity, Citadel Securities, and UBS, among others; DTCC said the service was developed with input from more than 150 institutions.

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