The Depository Trust & Clearing Corporation (DTCC) went live Wednesday with a tokenization service that moves U.S. stocks, bonds and funds onto blockchain infrastructure, marking a significant step for Wall Street's tokenization push.
The service runs on the Canton Network and DTCC's private Besu blockchain, initially supporting select large-cap stocks from the Russell 1000 index, exchange-traded funds (ETFs) and U.S. Treasury bills, notes and bonds. According to DTCC's product website, 34 securities are eligible at launch, representing approximately $30 trillion in market value, a DTCC spokesperson told CoinDesk.
DTCC sits at the center of U.S. securities markets. 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.
The tokens are backed one-for-one by securities held at DTCC subsidiary Depository Trust Company (DTC) and can move between registered wallets around the clock. Official ownership records remain with DTC even as tokens move between registered wallets, a structure that distinguishes the approach from synthetic stock tokens that track share prices without granting ownership of the underlying securities.
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, subject to compliance restrictions.
