DTCC launches tokenization service for 34 securities with 20 major firms
The post-trade giant will allow clients including JPMorgan and Fidelity to mint digital tokens representing stocks and ETFs held in its $114 trillion custody system.
Key takeaways
- 1DTCC launched its tokenization service with 34 securities and 20 institutional clients.
- 2Participants include JPMorgan, Fidelity, Citi, and Citadel Securities.
- 3The service enables tokenization of assets from DTC's $114 trillion custody pool.
- 4The SEC issued a no-action letter for the programme in December 2025.
- 5The system currently operates on the Canton and Besu networks.
The Depository Trust & Clearing Corporation (DTCC) launched its tokenization service on Wednesday, allowing financial institutions to mint digital versions of 34 different securities. Its subsidiary, the Depository Trust Company (DTC), said the service is now live for 20 initial clients including JPMorgan, Fidelity Investments, and Citi. The launch follows a pilot phase conducted in July 2026.
The DTCC Tokenization Service (DTS) converts traditional stocks and exchange-traded funds into tokens that can be moved between digital wallets. The company said these tokens carry the same ownership rights and legal protections as the original assets held in its custody. DTC currently manages more than $114 trillion in assets, which provides the underlying pool for these new digital representations.
Other participating firms include Citadel Securities, Alpaca, Clear Street, DriveWealth, and Interchange Clearing. The start of the service follows a "no action" letter from the US Securities and Exchange Commission in December 2025. This letter confirmed the regulator would not seek enforcement action against the subsidiary regarding the tokenization programme, providing a regulatory path for the firm to proceed.
The system currently uses the Canton Network and a private network called Besu. DTCC said it intends to support more blockchain networks starting in 2027. While tokens can be transferred between wallets at any time, the actual conversion of traditional securities into tokens follows a set schedule rather than being available 24 hours a day, according to The Defiant.
The DTCC operates as a central post-trade infrastructure for the US financial markets. By allowing the tokenization of assets already in its custody, the firm said it is creating a practical path for institutional adoption of digital assets. The company previously announced its intention to launch the full service in October 2026 after completing its summer trials.
Ondo Finance joined the project as a collaborator at launch. The ONDO token rose 1 per cent to $0.415 following the announcement, according to YourKhabri market data. The asset has a market valuation of $2bn and is currently the 50th largest cryptocurrency by market capitalisation. The firm will work within the DTCC system alongside the initial group of 20 financial participants.
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