JPMorgan, Citi and Barclays Are Now on DTCC's Tokenization Rails. Why Is Canton (CC) Still Down 21% This Month? - 24/7 Wall St.
JPMorgan, Citi, and Barclays are among 20 financial giants now using DTCC's blockchain settlement platform powered by Canton Coin, yet CC has fallen 21% this month despite the development.
The Depository Trust & Clearing Corporation (DTCC) launched its Tokenization Service on October 28, 2026, enabling blockchain tokens representing traditional securities on the Canton Network.
Major Banks Join Network
Twenty financial institutions have signed up to use DTCC's Tokenization Service, including Barclays, Citigroup, JPMorgan Chase, Morgan Stanley, and State Street. These participants hold over $114 trillion in assets under custody through DTC, the depository arm of DTCC. The service operates on both the Canton Network and DTCC's private Besu network, with plans to add more networks in 2027.
However, DTCC has not guaranteed that these banks will purchase, hold, or transact in Canton Coin. Institutions can avoid the public-token system entirely by using the Besu network, suggesting their participation reflects support for DTCC's initiatives rather than direct endorsement of CC.
Canton Coin's Decline
CC serves as the utility token for the Canton network, enabling applications to pay synchronizer fees that are permanently burned. The network mints new tokens as rewards for validators and app providers based on activity, but currently more CC is being minted than burned. This imbalance contributes to the token's 48.2% decline from its all-time high of $0.1942 in February 2026.
The participating banks are also developing their own systems.
Bank Competition
While using DTCC's platform, major banks are simultaneously developing their own blockchain solutions. Citi's CEO Jane Fraser highlighted tokenized deposits as a key focus, with the bank operating its own network connecting 300 institutions. State Street plans to launch its tokenized fund platform by year-end on Stellar, while JPMorgan offers its own tokenized fund products.
Canton Strategic Holdings (CNTN), a Super Validator on the Canton Network, recently divested its biotech division to focus on Canton-related businesses.
Tokenomics Uncertainty
Governance proposal CIP-0129 introduces universal burning of CC, but DTCC hasn't specified which synchronizer type it will use. If transactions occur on dedicated synchronizers, banks might burn less CC per transaction. Additionally, the Canton Development Fund allocated 15.8 million CC to RedStone for developing a privacy standard, with potential selling pressure if grant recipients liquidate their holdings.
Canton Strategic Holdings plans to list tokenized shares on TSV LLC starting November 2, though it's unclear whether CC will be used for these transactions. The company's future performance remains tied to CC's market value, which continues to trade below key moving averages.
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