Wall Street backbone DTCC brings $30 trillion securities closer to blockchain
The Depository Trust and Clearing Corporation launched a new tokenization service.
The short version
- It opens with 34 major securities representing $30 trillion in value.
- Twenty giant banks joined the rollout to trade digital shares around the clock.
- Your bank accounts and everyday loans are not changing right now.
The Depository Trust and Clearing Corporation, the giant at the heart of U.S. securities markets, went live with its tokenization service on Wednesday, taking a major step toward bringing stocks, bonds and funds onto blockchain infrastructure. The new service is available on the Canton Network and DTCC's private Besu blockchain, initially supporting select large-cap stocks from the Russell 1000 index, exchange-traded funds and U.S. Treasury bills, notes and bonds.
DTCC said 34 securities are eligible at launch, representing approximately $30 trillion in market value, according to CoinDesk. This debut is a significant milestone for Wall Street's tokenization push because DTCC sits at the center of how U.S. securities markets work. Through its subsidiaries, the firm handles clearing, settlement and custody for much of the country's stock and bond trading, with more than $114 trillion in securities held at its depository.
Twenty participants have signed agreements to access the service, including Bank of America, Fidelity Investments, JPMorgan, Morgan Stanley and UBS. Eligible firms can convert securities into tokens during business hours, with DTCC targeting processing times of 15 minutes or less. Once tokenized, the assets can move between registered blockchain wallets around the clock.
Analysts at Citi projected tokenized securities will become a $5.5 trillion market by 2030 as more financial institutions adopt blockchain technology. Frank La Salla, DTCC's president and CEO, said the move marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure.
The tokens are backed one-for-one by securities held at DTCC subsidiary Depository Trust Company, preserving their existing rights while opening the door to faster digital settlements. Wall Street is rewiring the pipes, and even the biggest banks are learning to code.
