DTCC Launches Securities Tokenization Service With 34 Assets, Stellar Integration Planned for 2027
The Depository Trust and Clearing Corporation (DTCC) has launched its securities tokenization service, initially supporting 34 securities, according to information published on its website and reported by Wu Blockchain. The service enables supported securities to be represented as tokens on blockchain networks while preserving their underlying legal and ownership rights.
The initial selection includes certain large-cap constituents of the Russell 1000, exchange-traded funds (ETFs) and U.S. Treasuries. The launch marks the start of DTCC's tokenization service with a defined group of traditional financial assets, rather than a broad rollout covering all securities.
Tokens Backed 1:1 by Securities Held in Custody
Under the service's structure, each token is backed on a 1:1 basis by the underlying securities held in custody by the Depository Trust Company (DTC). The tokenized assets carry the same legal and ownership rights as the corresponding underlying securities, according to the reported details.
This arrangement connects blockchain-based representations of securities with assets held within DTC's existing custody framework. The 1:1 backing and preservation of legal and ownership rights are central features of the service, distinguishing the tokenized representation from an asset that merely tracks a security's price.
The service also supports round-the-clock onchain transfers between wallets registered with DTC. This allows supported tokenized securities to be transferred onchain at any time, rather than limiting transfers to conventional markets hours. The reported functionality applies to transfers between DTC-registered wallets.
Initial Blockchain Support and Planned Expansion
At launch, the tokenization service supports the Canton Network and DTCC's private network based on Besu. These are the initial networks available for the service, according to the information reported by Wu Blockchain.
The network lineup is expected to expand. Stellar and Circle's Arc are expected to join the service in 2027, although the reported information does not provide specific integration dates within that year.
The planned additions would extend the networks supported by DTCC's tokenization service beyond its initial deployment. For now, the service's initial scope remains 34 securities, including selected large-cap Russell 1000 constituents, ETFs and U.S. Treasuries, with tokens backed 1:1 by securities held in DTC custody.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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