DTCC Tokenization Service Goes Live: $114 Trillion Clearing Giant Enters Blockchain - DailyCoin
The Depository Trust & Clearing Corporation (DTCC) has launched its DTCC Tokenization Service, with 20 major financial institutions including JPMorgan, Citi, and Fidelity signing agreements to use the platform.
The service, operated by DTCC subsidiary Depository Trust Company (DTC), allows users to convert securities between traditional and tokenized forms and receive them in a digital wallet. According to DTCC, tokenized securities maintain the ownership, investor protection and economic rights of traditional securities.
DTCC reports more than $114 trillion in assets under custody, making it the central clearing and settlement institution in the US securities market. The platform is designed to help participants move assets more efficiently, access new liquidity pools and use collateral within minutes.
Multi-Network Platform
The DTCC Tokenization Service uses a multi-network, interoperable model currently deployed on the Canton Network and DTCC's private network, built on Hyperledger Besu. Additional blockchain networks are planned for 2027.
Eligible assets include Russell 1000 constituents, exchange-traded funds tracking major indices, and tokenized US Treasuries. DTCC incorporated feedback from more than 150 companies in its DTC Digital Asset Solutions Industry Working Group.
The aim is to help institutions 'responsibly adopt digital assets at scale.'
Regulatory Backing
DTCC received a no-action letter from the US Securities and Exchange Commission (SEC) last December, authorizing DTC to offer tokenization services on an approved blockchain for three years. In March, the SEC approved rule changes allowing Nasdaq to implement tokenized settlement.
The SEC authorization is limited to Russell 1000 stocks and ETFs tracking the S&P 500 and Nasdaq 100. The agency is also working on an innovation framework for crypto platforms, signaling continued regulatory engagement with the technology.
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