DTC develops tokenization service for traditional securities
Summary
The Depository Trust Company (DTC) is developing a tokenization service that will allow approved institutions to tokenize traditional securities already held within its system, creating a bridge between traditional finance and on-chain markets. This initiative, authorized by the SEC, aims to facilitate on-chain settlement, collateral use, and lending by utilizing existing positions in the DTC’s inventory. Industry collaboration is significant, as leading traditional finance institutions and digital market participants are actively engaging in the development of this service, potentially enhancing the liquidity and trading capacity of tokenized stocks in the market.
Analysis
DTC: The Depository Trust Company (DTC) serves as the central securities depository and settlement agent for the vast majority of U.S. equities and other securities held by financial institutions. It is developing a tokenization service that lets approved participants create digital representations of positions already custodied at DTC for onchain settlement, collateral, and lending. This service enables institutions to leverage existing holdings for blockchain activities while the underlying securities remain in DTC's traditional custody system, preserving legal rights and facilitating interoperability with public chains. {"Industry Collaboration": "Leading TradFi institutions and digital market participants are actively testing and contributing to DTC's tokenization service development.", "Market Bridge": "DTC's tokenized entitlements can serve as the foundation for onchain products issued by public chain participants while maintaining equivalent ownership rights to traditional securities."}
Categories
cryptorwaethereumtechdatsdefi
Related sources
- https://www.ledgerinsights.com/prometheum-hashkey-plan-offshore-distribution-of-dtc-tokenized-stocks/
- https://www.dtcc.com/insights/2026/dtcc-looks-forward-to-2026-and-reflects-on-its-success-in-2025-i4aw
- https://www.coindesk.com/business/2026/07/15/dtcc-moves-tokenized-securities-into-live-trading-marking-a-milestone-for-wall-street-s-blockchain-push
- https://www.dtcc.com/press-releases/2026/dtcc-advances-development-of-new-tokenization-service
- https://coinfomania.com/inside-delphi-digitals-market-insights-concentration-of-onchain-tokenized-equities/
- https://www.dtcc.com/press-releases/2026/dtcc-turns-tokenization-into-reality
- https://www.dtcc.com/insights/2026/tokenization-and-the-future-of-us-markets
- https://www.bitrue.com/blog/dtc-tokenized-entitlements-ondo-blackrock-stocks-explained
- https://app.blockworksresearch.com/research/from-wrappers-to-venues/
- https://www.cnbc.com/2026/09/17/securitize-jumps-after-regulators-greenlight-tokenized-us-stocks.html
- https://defillama.com/research/spotlight/tokenised-stocks-whats-really-under-the-hood
- https://blog.chain.link/chainlink-24-5-us-equities-streams/
- https://www.dtcc.com/insights/2026/tokenization-moves-from-theory-to-reality
- https://www.ledgerinsights.com/dtc-tokenization-service-to-add-stellar-as-second-public-blockchain/
- https://www.cryptotimes.io/2026/09/16/zenith-joins-dtc-digital-assets-working-group-on-tokenization/
- https://www.dtcc.com/products-and-services/digital-assets/tokenization
- https://members.delphidigital.io/reports/the-emerging-onchain-equity-market
- https://www.congress.gov/119/meeting/house/119103/witnesses/HHRG-119-BA00-Wstate-SabellaC-20260325.pdf
- https://ondo.finance/blog/ondo-and-dtcc-collaborate-on-tokenized-stocks