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DTCC Tokenization Service (DTS)

5 min read

At a glance

Type: infrastructure
Jurisdiction: United States
Chain: At launch: Canton Network, Besu (DTCC private network); 2027: Stellar, Arc (Circle)
Status: pilot (SEC no-action letter 2025-12-11)
Last updated: 2026-10-28

FieldValue
nameDTCC Tokenization Service (DTS)
jurisdictionUnited States
product_nameDTCC Tokenization Service (DTS; Tokenized Entitlements)
structureSecurity entitlements recorded on DLT
chainsAt launch: Canton Network, Besu (DTCC private network); 2027: Stellar, Arc (Circle)
who_can_buyDTC participants (20 signed at launch, 28 Oct 2026)
num_assets34 securities at launch (~$30T eligible): select Russell 1000 equities, ETFs, Treasuries

In plain English: DTC, the US central securities depository, is testing tokenized versions of shares it already holds.

DTC operates a tokenization pilot under a 11 Dec 2025 SEC no-action letter (SEC); 24X Exchange filed rules referencing it (SEC).

DTC no-action letter (11 Dec 2025)

Staff relief lets DTC participants record security entitlements on DLT (“Tokenized Entitlements”) for Russell 1000 stocks, major-index ETFs and Treasuries; tokens have no collateral or settlement value for Net Debit Cap / Collateral Monitor (SEC NAL; Mayer Brown). The letter is withdrawn three years from the date DTC launches the service (SEC NAL).

Live (28 Oct 2026)

DTC launched the DTCC Tokenization Service (DTS) on 28 Oct 2026 (DTCC). Tokenized security entitlements convert between traditional and tokenized form and go to users’ wallets of choice, keeping the ownership rights, investor protections and economic entitlements of the traditional securities (DTCC).

  • Participants: 20 DTC participants have signed agreements: Alpaca, Apex Clearing Corporation, Barclays, Bank of America, BNP Paribas, Brown Brothers Harriman, Citadel Securities, Citi, Clear Street, DriveWealth, Edward Jones, Fidelity Investments, Interchange Clearing, J.P. Morgan, Marex, Mirae Asset Securities (USA) Inc., Morgan Stanley, State Street, UBS and Velocity Capital LLC. More will be onboarded on a rolling basis (DTCC).
    • Participant Interchange Clearing runs execution, clearing and custody on one real-time platform with direct DTC and NSCC links (Interchange).
  • Networks: Canton Network and DTCC’s private Besu network today, with more networks in 2027 (DTCC).
  • Ecosystem: collaborators and partners include BitGo Bank & Trust, Blockdaemon, Broadridge, DFNS, DRW, Fireblocks, HIFI, Kaleido, Matter Labs, Ondo, Prometheum Capital, Talos, Taurus, Temple Digital Group, Tradeweb, Transcend and Virtu (DTCC).
  • Design input: more than 150 firms in the DTC Digital Assets Solutions Industry Working Group (DTCC).
  • Scale: DTC has more than $114T in assets under custody (DTCC).

Scope at launch follows the Day 1 tear sheet below (raw/104).

Progress

DTCC said the service was designed with feedback from more than 50 firms, with limited production trades planned for July 2026 and launch in October 2026 (DTCC). About 40 firms took part in live production trades; the 28 Oct go-live release says “more than 30 firms” completed the initial limited-production trades (DTCC; DTCC press).

On 23 Oct 2026 DTCC posted a Day 1 product tear sheet and an online user guide to its Learning Center (DTCC tear sheet).

Before launch, no go-live date was public; The Block (8 Oct 2026) reported launch was expected that month (The Block, secondary).

Scope at launch (Oct 2026)

DTCC’s Day 1 tear sheet (23 Oct 2026) says 34 securities are available to tokenize at launch (DTCC tear sheet); its earlier at-a-glance sheet said 25 (DTCC), and DTCC does not explain the change.

Other launch terms in the at-a-glance sheet, unchanged in the tear sheet: about $30T eligible, backed 1:1 by securities held at DTC, same CUSIP and the same rights and investor protections as book-entry securities, and 24/7 peer-to-peer transfers between DTC-registered wallets on the same chain (DTCC).

Live at launch: Canton Network (CIP-56) and Besu, DTCC’s private network (ERC-20); Stellar and Circle’s Arc are anticipated in 2027 (DTCC). Eligible assets start with select large-cap Russell 1000 equities, select ETFs and a select set of Treasury bills, notes and bonds (DTCC).

Conversion orders run 2 a.m.-6 p.m. ET on business days, targeting 15 minutes or less; tokens carry transfer restrictions; official books and records stay with DTC; Treasury distributions and maturities pay in fiat to participants’ traditional accounts (DTCC).

Roadmap for 2027 and beyond (indicative): equity/ETF corporate actions, a consolidated stock record, on-chain netting and digital cash (DTCC). Coverage: Crypto Briefing (news).

Firm counts differ by stage, and all of them come from DTCC: more than 50 firms gave design feedback; its July live-trades page says about 40 firms took part; its 28 Oct go-live release says “more than 30 firms” completed the initial limited-production trades. DTCC doesn’t explain the gap, so both figures are shown with their source.

DRS modernization (SR-DTC-2026-012)

DTC filed on 29 Sep 2026 to modernize the Direct Registration System (DRS), which moves shares between Cede & Co. and the holder’s own name on the issuer’s books; the SEC published notice on 5 Oct 2026 (Release 34-106552) (SEC notice). The aim is to cut processing “from days to minutes” by retiring legacy terminal and batch-file methods, offering DRS through DTC’s SPA screens plus API and MQ messaging, automating the Deliver Order after a transfer agent approves a deposit, and adding status tracking and an audit trail (SEC notice). Only a DTC participant can start a withdrawal (SEC notice). DTC expects to implement on 13 Nov 2026, and no later than January 2027 (SEC notice).

Securitize’s 25 Oct comment letter notes the filing does not mention DTC’s tokenization service, and asks for a one-step burn-and-withdraw instruction, published processing times, DWAC modernization, a broker timing expectation, and a fast return to street name (Securitize; Securitize letter).

Watch

  • Go-live: done, 28 Oct 2026 (DTCC). Next: new participants, added securities beyond the launch 34, and 2027 networks (Stellar, Arc).
  • DRS modernization: confirm whether it went live 13 Nov 2026 or the later date in a DTC Important Notice, whether the SEC approved SR-DTC-2026-012, and whether DTC responds to the Securitize letter (SEC notice).
  • First named users: 20 participants named 28 Oct 2026 (see Live). Watch for which ones actually tokenize client positions.

Sources

Public originals for the facts on this page.

Last checked 2026-10-28. Headline fields only; unknown means not yet verified from a source.

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