Depository Trust & Clearing Corporation (DTCC), a major Wall Street operator, has announced plans to launch a tokenized securities platform, with limited production trades set to commence in July and a full launch scheduled for October. The platform, developed within DTCC's Depository Trust Company, will enable firms to create digital versions of assets currently held in custody, while maintaining the same ownership rights and protections. This initiative has been shaped by input from over 50 firms, including prominent financial institutions such as BlackRock, Goldman Sachs, and JPMorgan, as well as crypto-native companies like Anchorage and Circle. As a core piece of market infrastructure, DTCC's move into blockchain-based settlement marks a significant milestone, with the potential to reduce settlement times, cut costs, and increase market accessibility.
The company's efforts are part of a broader trend among traditional financial institutions to explore tokenization, which involves representing assets like stocks or bonds on a blockchain. According to DTCC President and CEO Frank La Salla, 'tokenization will significantly change how markets work and operate, bringing new levels of liquidity, transparency, and efficiency to investors.' This development is also reflective of a wider race to build a shared infrastructure for trading stocks, bonds, and digital assets, often referred to as an 'everything exchange.' DTCC has been gradually building towards this moment, having tested distributed ledger systems for years and joined projects like the Canton Network.
In December, the firm received a no-action letter from the SEC, allowing it to offer tokenization services for a defined set of assets. Other Wall Street operators, such as Nasdaq and Intercontinental Exchange, are also pushing forward with their own tokenization plans, with the potential to launch blockchain-based shares and stocks in the near future.