The Depository Trust & Clearing Corporation (DTCC) has entered into a strategic partnership with Digital Asset and the Canton Network to tokenize U.S. Treasury securities.
This initiative marks the first time that assets custodied by The Depository Trust Company (DTC) will be minted on the Canton Network. The move follows the DTCC’s recent receipt of a No-Action Letter from the SEC, which cleared the path for the infrastructure giant to operate a service for tokenizing real-world assets.
Bridging traditional and digital finance
The collaboration aims to create a “digital infrastructure that seamlessly bridges the traditional and digital financial ecosystems,” according to Frank La Salla, CEO of DTCC. By leveraging its ComposerX suite of platforms, the DTCC plans to issue tokenized versions of U.S. Treasuries while maintaining the safety and resilience of existing custody frameworks.
The project is scheduled to launch as a Minimum Viable Product (MVP) in a controlled production environment during the first half of 2026. The initial phase will focus on U.S. Treasuries, with plans to expand the scope to other DTC-eligible assets based on client demand.
Yuval Rooz, co-founder and CEO of Digital Asset, described the partnership as a step toward “future-proof, interoperable financial ecosystems,” noting that the DTCC’s leadership would accelerate industry adoption and unlock new liquidity opportunities.
Operational efficiencies and governance
The tokenization of securities is expected to generate significant operational efficiencies for market participants, including hedge funds and major market makers. By streamlining processes and reducing operational risk, the initiative aims to enhance capital efficiency and improve balance sheet management.
Beyond the technical implementation, the DTCC will also take a leadership role in the governance of the network. The corporation will join the Canton Foundation as co-chair alongside Euroclear, a position that will allow it to help set industry-wide standards for decentralized financial infrastructure.
Brian Steele, managing director and president of Clearing & Securities Services at DTCC, stated: “Our goal is to enable the industry and DTC Participants to take advantage of tokenization capabilities that enhance liquidity, operational efficiency and market transparency.”.
As the premier post-trade market infrastructure for the global financial services industry, the DTCC processes quadrillions of dollars in securities transactions annually. This move represents a significant validation of blockchain technology’s utility within the core of the regulated financial system.