The Depository Trust Company has launched its production tokenization service with 34 securities available across Canton Network and DTCC’s private Besu environment. According to the official DTCC announcement, the service creates 1:1-backed digital representations of securities already held at DTC while preserving their existing ownership rights, economic interests and investor protections. Twenty DTC Participants have signed agreements to access the platform.
The initial group includes J.P. Morgan, Citi, Bank of America, Morgan Stanley, Fidelity Investments, State Street, UBS and Citadel Securities. The 34 launch securities represent a limited subset of the broader universe DTC is authorized to tokenize, which includes selected Russell 1000 equities, ETFs tracking major indices and U.S. Treasury bills, notes and bonds. The launch follows limited-production transactions completed with more than 30 firms in July.
Tokens Remain Anchored to DTC Custody
DTC’s structure differs materially from synthetic stock tokens that merely reference an equity price. Eligible participants convert conventional DTC security entitlements into tokenized entitlements while the corresponding securities remain within the depository framework. The blockchain representation and conventional position draw from the same underlying security and retain the same legal and economic rights, allowing tokenization without creating a separate synthetic claim.
That regulated structure fits the broader principle that tokenized stocks remain securities subject to existing custody and compliance requirements. Changing the recordkeeping and transfer technology does not remove the security from its existing legal perimeter. DTC continues maintaining its official books and records while registered blockchain wallets provide an additional mechanism for holding and transferring entitlements.
The service supports 24/7 peer-to-peer transfers, but that capability is specifically intra-chain and limited to DTC-registered wallets. Round-the-clock token movement should not be confused with 24/7 conversion, cross-chain transfer or complete trade settlement. The distinction is particularly relevant as separate projects pursue 24/7 tokenized stock trading venues with different execution and regulatory architectures.
Canton and Besu Open a Multi-Network Model
At launch, participants can use Canton Network or DTCC’s private Besu infrastructure. Canton is a public blockchain built for regulated financial applications, while Besu provides DTCC with a separate permissioned Ethereum-compatible environment. DTCC has not defined the two networks as having exclusive roles for external transfers and internal controls; instead, they form the first components of a multi-network architecture intended to expand over time.
Canton has increasingly become infrastructure for institutional collateral, securities and settlement workflows, supported by growing investment from major financial institutions. DTCC’s production launch adds DTC-custodied securities to that institutional stack without moving custody outside DTC. That separation between blockchain mobility and traditional custody is central to the service’s design.
The regulatory framework remains deliberately bounded. The SEC staff’s December 2025 No-Action Letter authorizes the program for three years and covers a defined set of liquid securities. The service therefore represents a regulated production pathway rather than unrestricted permission to tokenize the U.S. securities market. Tokenized equities outside this model continue to face separate questions around ownership rights, issuer participation and trading structure, as illustrated by the rapid expansion of on-chain stock products.
DTCC plans to extend connectivity in 2027, with Stellar expected during the first half and Circle’s Arc during the second half. The immediate milestone, however, is narrower and already operational: DTC Participants can now convert selected regulated securities into 1:1 tokenized entitlements and move them between registered wallets on approved blockchain infrastructure. Actual tokenized balances, transaction volume and collateral usage will show how quickly that production capability translates into recurring institutional activity.
