Depository Trust & Clearing Corporation (DTCC), a major Wall Street operator, has announced that it will commence limited production trades of tokenized securities in July, with a full-scale launch of its platform scheduled for October. The new service, 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 with input from over 50 firms, including prominent institutions such as BlackRock, Goldman Sachs, and JPMorgan, as well as crypto-native companies like Anchorage and Circle.
As a core component of market infrastructure, DTCC's move into blockchain-based settlement marks one of the most concrete timelines yet. With trillions of trades processed daily and over $114 trillion in securities held in custody, DTCC's efforts are poised to significantly impact the market. The process of tokenization, which involves representing assets like stocks or bonds on a blockchain, has garnered increasing interest among traditional financial institutions due to its potential to reduce settlement times, lower costs, and expand market access. According to Frank La Salla, DTCC President and CEO, "tokenization will revolutionize the way markets function, bringing unprecedented levels of liquidity, transparency, and efficiency to investors." This development is part of a broader trend on Wall Street, with other major operators also exploring tokenization.
For instance, Nasdaq is working on a framework for companies to issue blockchain-based shares, while Intercontinental Exchange, the owner of the New York Stock Exchange, has backed plans for tokenized stocks through a partnership with crypto platform OKX. These efforts reflect a growing race to establish 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 obtained a no-action letter from the SEC, allowing it to offer tokenization services for a defined set of assets, including Russell 1000 stocks, ETFs, and U.S. Treasuries.