Depository Trust & Clearing Corporation (DTCC), a major Wall Street operator, has announced plans to initiate limited production trades of tokenized securities in July, followed by a broader launch of its platform in 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. Over 50 firms, including BlackRock, Goldman Sachs, JPMorgan, and crypto-native companies such as Anchorage and Circle, have contributed to the development of this system. As a central 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 access.
The company processes trillions of trades daily and serves as custodian of over $114 trillion in securities. According to Frank La Salla, DTCC President and CEO, 'tokenization will significantly change how markets work and operate, bringing new levels of liquidity, transparency, and efficiency to investors.' This development is part of a larger trend on Wall Street, with other major operators such as Nasdaq and Intercontinental Exchange also exploring tokenization.
DTCC has been working towards this moment, having tested distributed ledger systems for years and obtained a no-action letter from the SEC in December, allowing it to offer tokenization services for a defined set of assets.