Morgan Stanley has emerged as one of the first banks to adopt the Depository Trust & Clearing Corporation's (DTCC) newly launched Tokenization Service, converting U.S. equities and U.S. Treasuries into tokenized form on market infrastructure that safeguards more than $114 trillion in securities.

The Wall Street bank indicated it is among the first financial institutions to tokenize U.S. equities and Treasuries on the platform, describing the move as another step in its venture into real-world asset tokenization. According to DTCC, the service opens opportunities for increased asset mobility, liquidity and capital efficiency.

The bank confirmed its participation in a post on its official X account on November 3, 2026, following the service's October 28 launch:

We are thrilled to announce that Morgan Stanley is among the first banks to tokenize real-world assets following the launch of the @The_DTCC Tokenization Service (DTS), converting U.S. Equity and U.S. Treasuries to tokenized form. Launched on October 28, DTS creates tokenized representations of DTC-custodied securities to support greater liquidity, collateral mobility and capital efficiency.

— Morgan Stanley (@MorganStanley) November 3, 2026

Morgan Stanley Moves U.S. Securities Onchain

DTCC officially introduced DTS on October 28 as a new tokenized offering of traditional securities that operates within a regulated market infrastructure. Eligible participants of the Depository Trust Company (DTC) can issue digital securities on the service that are backed by securities they already hold at DTC. Those assets can be transferred from traditional storage to blockchain storage while retaining the same ownership rights and economic value. DTC serves as the central securities depository for the U.S. market, holding securities on behalf of participating firms.

Twenty DTC participants have signed agreements to give users access to the service, with Morgan Stanley among them. Other companies involved include JPMorgan, Bank of America, Citi, Barclays, Fidelity Investments, State Street and UBS. The mix of global banking majors and asset managers among the initial participants means the service's access base spans multiple corners of traditional finance from day one.

Tokenized Assets Keep Their Traditional Rights

According to DTCC, the tokenized securities are digital replicas of assets held at DTC, meaning investors do not receive a synthesized product. Each token is issued as a representation of an entitlement relating to the underlying security and is designed to maintain investor protections and economic rights.

Eligible assets may be switched between their traditional and tokenized states, providing institutions with the ability to leverage regulated securities in blockchain-based processes. This two-way conversion allows securities to move between conventional custody records and blockchain-based applications without changing their underlying ownership or economic characteristics.

DTCC Targets Faster Collateral Movement

Key objectives of DTS include making securities more mobile and easier to deploy. DTCC said tokenization will enable institutions to tap into new liquidity pools, move collateral across faster and balance capital utilization. The service handles token transfers between registered digital wallets that operate 24/7 and are compatible with approved digital networks.

DTS initially launched with support for the Canton Network and DTCC's private Besu network, and DTCC is looking to expand its network coverage in 2027. The platform features a limited number of highly liquid securities, including selected Russell 1,000 stocks, large-cap index ETFs and U.S. Treasury bills, notes and bonds.

$114 Trillion Custody Giant Expands Into Tokenization

The launch is noteworthy for the broader tokenized real-world asset market given the scale of DTCC's infrastructure. To date, D has more than $114 trillion in securities assets held in custody, providing a significant pool that may be integrated into tokenized workflows over time.

DTCC previously conducted a test in July in which about 40 companies took part in live production trades of tokenized U.S. Treasuries and stocks. The transactions encompassed deals that took place under the Treasury repo regime as well as buy-sell trades and equity delivery-versus-payment transactions.

By joining the service, Morgan Stanley brings the technology out of the testing phase and into active usage by institutions on a live tokenization platform. How adoption develops beyond the initial twenty participants will be the measure of the service's footprint, and DTCC's planned network expansion in 2027 offers the next checkpoint for how far the platform can reach.

Source: Crypto Ninjas