Key Highlights:
- The Depository Trust & Clearing Corporation (DTCC) has introduced a service to bring tokenized securities into regulated market infrastructure, backed by 20 major financial institutions.
- Participating firms include Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street, and UBS.
- Eligible securities can be tokenized during standard business hours in under 15 minutes and transferred 24/7 across registered blockchain wallets within compliance limits.
DTCC Integrates Tokenized Assets Into Core Financial Infrastructure
Bringing blockchain technology into the system could make tokenized assets part of mainstream market infrastructure rather than a separate market operating alongside it. Tokenization promises to make financial assets easier to transfer, settle and use as collateral. While banks and asset managers have spent years experimenting with blockchain-based securities, connecting those assets to the systems that already underpin trillions of dollars in transactions could help bring the technology into everyday market operations.
The push toward onchain traditional finance comes amid bullish long-term industry projections. Analysts at Citi projected tokenized securities will become a $5.5 trillion market by 2030 as more financial institutions adopt blockchain technology.
Bringing Traditional Securities Onchain
Marking a critical bridge between distributed ledger networks and legacy systems, Frank La Salla, DTCC’s president and CEO, highlighted the structural milestones achieved by the deployment. “Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure,”
said Frank La Salla, DTCC’s president and CEO. “By extending DTC’s resiliency, governance and operational standards into digital markets, we are establishing the foundation for responsible institutional adoption at scale.”
The operational framework launches with deep tier-one institutional engagement. Twenty participants have signed agreements to access the service, including Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street and UBS. DTCC said more firms will join over time.
Operational Mechanics and 24/7 Movement
The system provides institutional players with structured pathways to convert traditional holdings into digital forms under regulated oversight. 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.
Why This Matters
Historically, digital asset pilots and private institutional blockchains have existed in silos, isolated from core post-trade infrastructure and settlement systems. By integrating tokenization directly into the framework of the Depository Trust Company (DTC), DTCC allows tier-one broker-dealers, global custodians, and investment banks to interact with tokenized representations of securities without sacrificing established governance, risk management, or regulatory safeguards. This connection lays the groundwork for seamless, 24/7 collateral mobilization across institutional capital markets.
Frequently Asked Questions
Which financial institutions are participating in the DTCC tokenization initiative?
Twenty institutions have signed agreements to access the service, including Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street, and UBS, with DTCC expecting more firms to join over time.
How fast does the tokenization process take?
Eligible market participants can convert their securities into tokens during regular business hours, with DTCC targeting a processing turnaround time of 15 minutes or less.
Can tokenized assets be traded and transferred at all hours?
Yes. Once traditional securities are converted into tokens, they are capable of moving between registered blockchain wallets 24 hours a day, 7 days a week, provided the transfers adhere to applicable compliance restrictions.
