The DTCC Tokenization Service is the Depository Trust & Clearing Corporation’s system for turning securities held at the Depository Trust Company (DTC) into 1:1 tokenized "digital twins" that keep the same CUSIP, ownership rights and investor protections as the underlying assets. DTCC has now published the launch scope for the service, which is set to go live in October 2026: roughly $30 trillion in securities are available to tokenize, beginning with select Russell 1000 large-cap equities, exchange-traded funds (ETFs) and U.S. Treasuries.
The rollout follows a December 2025 no-action letter in which the U.S. Securities and Exchange Commission authorized DTC to tokenize the assets it already custodies, and a July production exercise in which more than 30 firms processed real trades using DTC-tokenized assets, including BlackRock, Goldman Sachs, J.P. Morgan, CME Group and Marex.
What the Service Tokenizes — and Where It Runs
DTCC’s launch materials define the initial scope across three asset classes. Russell 1000 equities start with a select set of large-cap names and expand across the index over time. ETFs begin with a chosen group before widening, and U.S. Treasury bills, notes and bonds launch with a select set. Every token is backed 1:1 by the underlying security held at DTC, so a tokenized share represents the same position — not a new instrument.
| At Launch | Network | Token Standard |
|---|---|---|
| Canton Network | Public network | CIP-56 |
| Besu (DTCC private network) | Private network | ERC-20 |
| Stellar (2027) | Public network | SEP-41 |
| Arc / Circle (2027) | Public network | ERC-20 |
The service goes live on Canton and Besu, with Stellar and Circle’s Arc expected in 2027 and additional layer-1 and layer-2 networks to follow based on client demand. That multi-chain design matters because it determines where tokenized collateral can actually move — and which counterparties can accept it.
How Conversion and Settlement Work
Participants submit conversion orders through a UI or API between 2 a.m. and 6 p.m. Eastern time on business days, with processing targeted at 15 minutes or less. Once converted, tokens can move peer-to-peer between DTC-registered wallets around the clock, while the official books and records remain with DTC.
Because a token carries the same CUSIP as the underlying security, it can serve as collateral or settle against the same entitlements as a traditional position. DTCC says its smart contracts will launch with compliance and distribution controls — including mint, burn, pause and clawback functions — and ComposerX LedgerScan for near-real-time ownership tracking across traditional and blockchain ledgers.
What It Does Not Do — and What Happens Next
The service does not issue new securities or move official records off DTC’s ledger. Tokens are digital representations of existing positions, confined to registered participant wallets, and conversion is limited to business-hours windows even though transfers themselves run 24/7. For broader context on how tokenized equities fit into the market, see BlockchainReporter’s explainer on what tokenized stocks are.
On-chain U.S. Treasury servicing — distributions and maturities paid in fiat to participants’ traditional accounts — arrives at launch, while on-chain net settlement, digital cash and expanded corporate-action servicing sit on the 2027 roadmap. DTCC has framed the service as bringing institutional-grade safeguards to tokenized markets on day one, a step that matters because it extends the settlement and custody rails used for most U.S. equities into blockchain-based workflows.
Frequently Asked Questions
Is the DTCC Tokenization Service live?
Not yet. DTCC has run production trades since July 2026 and published its launch scope, with the commercial service scheduled to go live in October 2026.
Which blockchains does the DTCC Tokenization Service use?
It launches on the Canton Network (CIP-56) and DTCC’s private Besu network (ERC-20). Stellar (SEP-41) and Circle’s Arc network (ERC-20) are expected to connect in 2027.
What is a digital twin in tokenization?
A 1:1 tokenized representation of a security that carries the same CUSIP, ownership rights and investor protections as the book-entry asset held at DTC. It is a representation of an existing position, not a newly issued security.
Can retail investors buy DTCC-tokenized securities?
No. Transfers are limited to peer-to-peer movement between DTC-registered participant wallets, and onboarding of eligible DTC participants expands over time. This is institutional market infrastructure, not a retail trading venue.
Does tokenization replace DTC’s books and records?
No. The official books and records remain with DTC. Tokens add a blockchain representation and 24/7 transfer capability without displacing the existing central ledger.
