Depository Trust & Clearing Corporation (DTCC), a key Wall Street player, announced on Monday that it will commence a limited production phase for tokenized securities in July, with plans to fully launch its platform in October. The 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 has been shaped with input from over 50 firms, including major financial institutions such as BlackRock, Goldman Sachs, and JPMorgan, as well as crypto-native companies like Anchorage and Circle.
As a central component of the US market infrastructure, DTCC's move into blockchain-based settlement marks a significant milestone. The company processes trillions of trades daily and holds over $114 trillion in securities in custody.
The process of tokenizing assets, such as stocks or bonds, on a blockchain has garnered increasing interest from traditional financial institutions, which believe it can reduce settlement times, lower costs, and increase market accessibility. According to Frank La Salla, DTCC President and CEO, "Tokenization is expected to revolutionize the way markets function, bringing enhanced liquidity, transparency, and efficiency to investors." This development is part of a broader push towards tokenization on Wall Street, with other major players, such as Nasdaq and Intercontinental Exchange, also exploring blockchain-based solutions.
These efforts aim to create a shared infrastructure for trading various assets, including stocks, bonds, and digital assets. DTCC has been gradually building towards this moment, having tested distributed ledger systems for years and participated in projects like the Canton Network. In December, the company received a no-action letter from the SEC, allowing it to offer tokenization services for a specified set of assets.