Depository Trust & Clearing Corporation (DTCC), a prominent Wall Street operator, has announced plans to initiate a limited production trade of tokenized securities in July, paving the way for a broader platform launch in October. The new service, which is being 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 is the result of collaboration with over 50 firms, including notable 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 a significant development. The firm processes trillions of trades daily and serves as custodian of more than $114 trillion in securities. The growing interest in tokenization among traditional financial institutions is driven by its potential to reduce settlement times, lower costs, and increase market accessibility.
According to Frank La Salla, DTCC President and CEO, "tokenization is expected to bring about significant changes in how markets operate, leading to enhanced liquidity, transparency, and efficiency for investors." This move is part of a larger trend on Wall Street, with other major operators also exploring tokenization. Nasdaq, for instance, 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 broader race to establish a shared infrastructure for trading stocks, bonds, and digital assets. 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.