DTCC sets October launch for tokenized securities service

The Depository Trust & Clearing Corporation plans to launch a service in October that will represent securities it holds in custody as blockchain tokens, bringing a major piece of U.S. market infrastructure onto digital networks. DTCC said the service is designed to preserve the same ownership rights and investor protections as the traditional securities; its May announcement set July for initial limited production trades ahead of the planned launch.

The mechanism starts with an asset already held by the Depository Trust Company, DTCC’s depository subsidiary. The service creates a digital token representing that asset. The token can then be used on a blockchain, while the underlying security remains in DTC custody. In its announcement, DTCC said the service is intended to support use across multiple chains. The company said DTC holds more than $114 trillion in assets.

Which securities could the service cover?

The SEC’s December 2025 no-action letter authorized DTC to offer a defined tokenization service for three years. DTCC said the eligible assets include Russell 1000 constituents, exchange-traded funds tracking major indexes, and U.S. Treasury bills, bonds and notes. The authorization applies to DTC participants and their clients.

More than 50 financial firms have worked with DTCC on the service, according to the company. The group includes banks, brokers, asset managers, trading venues and crypto firms. Its members include BlackRock, Citi, Goldman Sachs, J.P. Morgan, Nasdaq, NYSE Group, Robinhood, State Street and Wells Fargo. Their participation does not mean each firm has committed to use the service.

What changes when a security becomes a token?

A token can be transferred and recorded on a blockchain, but tokenization does not itself change the legal rights attached to the security. DTCC says its tokens will carry the same entitlements, investor protections and ownership rights as securities held in traditional form. The service therefore connects a blockchain record to assets held within the existing custody system.

The aim is to make those assets usable on digital networks while retaining the established custody and protections behind them. In an October report on financial institutions’ blockchain projects, Axios described the wider shift toward private blockchains for tracking money and investments. It also noted a coordination problem: different networks could create separate versions of the same asset, complicating prices and liquidity.

DTCC said it would work with participating firms to test operational workflows, including whether tokenized assets can interoperate across chains. The October launch is a plan announced by the company; the service’s reach will depend on how participants connect their systems and use the tokens.

Sources

• DTCC said — dtcc.com
• Axios described — axios.com