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Tanzeel Akhtar
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The Depository Trust & Clearing Corporation (DTCC) has partnered with Digital Asset Holdings and the Canton Network to enable the tokenization of DTC-custodied U.S. Treasury securities.
DTCC said this is its first move toward making DTC-custodied assets available on-chain, as traditional financial institutions continue to explore regulated, scalable blockchain applications.
Earlier this month, the U.S. Securities and Exchange Commission cleared the way for DTCC to advance its expansion into blockchain-based markets.
Regulatory Backing Allows On-Chain Expansion
The latest partnership follows DTCC’s recent receipt of a No-Action Letter from the U.S. Securities and Exchange Commission, allowing it to implement and operate a new service to tokenize real-world assets held at The Depository Trust Company (DTC).
The firm said regulatory clarity provides the foundation for DTCC’s on-chain strategy allowing the organization to experiment with blockchain-based workflows while remaining aligned with existing market safeguards and compliance standards.
By working with Digital Asset and the Canton Network, DTCC said it aims to bridge traditional post-trade infrastructure with distributed ledger technology in a controlled and institution-ready environment.
U.S. Treasury Tokenization Pilot Planned for 2026
Under the partnership, DTCC plans to mint a subset of U.S. Treasury securities custodied at DTC on the Canton Network.
The organizations are also targeting a minimum viable product in a controlled production environment during the first half of 2026. Based on client demand, DTCC said it expects to expand both the scale and scope of the project in subsequent phases.
To support the initiative, DTCC said it will leverage its ComposerX suite of platforms, which is designed to facilitate tokenization and interoperability across market infrastructures.
Building Institutional-Grade Digital Infrastructure
DTCC CEO Frank LaSalla describes the collaboration as a step toward creating digital infrastructure that connects traditional and digital financial ecosystems.
“This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with U.S. Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets,” he said.
Long-Term Vision for Capital Markets Tokenization
Digital Asset Co-Founder and CEO Yuval Rooz said the partnership highlights a collective ambition among market leaders to build interoperable, future-proof financial systems.
He notes that DTCC’s involvement could unlock new liquidity opportunities, products, and operational efficiencies across capital markets.
While the full roadmap is expected to unfold over several years, the initial phase is intended to deliver benefits to market participants by providing access to tokenized U.S. Treasurys in a regulated environment.
JPMorgan to Launch Tokenized Money-Market Fund on Ethereum
Earlier this week the Wall Street Journal report reported JPMorgan Chase’s $4 trillion asset-management division is launching its first tokenized money-market fund on the Ethereum blockchain, according to a
The bank will initially seed the vehicle with $100 million of its own capital before opening it to external investors, reports the WSJ.
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