The Depository Trust & Clearing Corporation (DTCC) has launched a service designed to bring tokenized securities into traditional financial markets, enabling eligible users to convert securities held at The Depository Trust Company (DTC) into tokenized representations and deliver them to digital wallets.

Announced on Oct. 28, the DTCC Tokenization Service (DTS) preserves the ownership rights, investor protections, and economic entitlements of the underlying securities. The launch extends DTCC's established market infrastructure into digital markets, with DTC holding more than $114 trillion in assets under custody. That scale means tokenized securities would sit within the same operational infrastructure that already handles traditional securities, rather than on a parallel system built outside it.

Twenty DTC participants have signed agreements to use DTS, including major financial institutions such as Bank of America, BNP Paribas, Citi, JPMorgan, Morgan Stanley, State Street, and UBS. The lineup gives the service a base of early users spanning global banking, trading, and custody operations.

The service was developed with input from more than 150 firms and is intended to support transactions spanning both traditional and tokenized markets. DTS currently connects to the Canton Network and DTCC's private Besu network, with additional blockchain integrations planned for 2027. That multi-chain connectivity allows tokenized securities to move across more than a single blockchain environment.

DTCC has also brought together wallet providers, applications, and technology firms to expand connectivity across the digital asset ecosystem, so tokenized holdings can be reached through a range of wallets and applications.

The rollout follows a series of regulatory and industry milestones. In December 2025, DTC received a no-action letter from the US Securities and Exchange Commission permitting the tokenization of Russell 1000 constituents, ETFs tracking major indices, and US Treasury securities. DTCC and more than 30 firms subsequently completed initial limited-production trades and multiple onchain transactions. With the regulatory groundwork in place and the first cohort of participants signed on, the planned 2027 blockchain integrations and the expanding wallet ecosystem are the developments to watch as tokenized securities move further into mainstream market infrastructure.

Source: CryptoBriefing. The original article was edited by Vivian Nguyen.