The Depository Trust & Clearing Corporation (DTCC) has launched its tokenization service for securities held in custody, with plans to bring the service to Stellar as its first public blockchain integration in the next phase of its rollout.
Summary
- DTCC has launched its tokenization service, allowing eligible financial institutions to create blockchain representations of securities held in DTC custody while retaining their existing ownership rights and investor protections.
- Stellar Development Foundation said DTCC plans to launch on its network first, following discussions between DTCC Digital Assets head Nadine Chakar and Stellar CEO Denelle Dixon at Meridian 2026.
- The service is currently integrated with Canton Network and DTCC’s private Besu network, while the previously announced Stellar integration is expected to bring tokenized securities to the blockchain in the first half of 2027.
- Twenty financial institutions have signed agreements to access the service, including JPMorgan, Bank of America, Barclays, Citi, Fidelity Investments, Morgan Stanley, State Street and UBS.
- DTCC developed the service with input from more than 150 financial firms after receiving SEC no action relief in December 2025 to tokenize eligible U.S. stocks, exchange traded funds and Treasury securities.
According to an October 28 announcement, its subsidiary, the Depository Trust Company (DTC), has started operating the DTCC Tokenization Service, which allows eligible financial institutions to create blockchain-based representations of traditional securities while retaining their existing ownership rights and investor protections.
The service is currently integrated with the Canton Network and DTCC’s private Besu network, while other blockchain integrations are expected to follow in 2027.
Meanwhile, during the Meridian 2026 conference, DTCC Digital Assets head Nadine Chakar joined Stellar Development Foundation CEO Denelle Dixon to discuss the company’s plans to bring tokenized securities onto public blockchain infrastructure.
In an October 28 social media post, Stellar said DTCC plans to launch on its network first and shared comments from Chakar about the blockchain’s suitability for the service.
“We have put up our parameters of what we need in a chain. Stellar went through them with flying colors,” Chakar said, according to the post.
The Stellar integration was first announced in May, with the companies targeting the first half of 2027 for tokenized assets to become available on the network.
DTCC tokenization service begins with 20 financial institutions
Under the newly launched service, eligible DTC participants can mint tokenized representations of securities already held within DTC’s custody infrastructure.
These representations, described as digital twins, can be converted between traditional and tokenized forms and transferred to participating institutions’ digital wallets.
DTCC said the tokens will retain the same economic entitlements, ownership rights and investor protections as the underlying securities, allowing institutions to use them in blockchain-based transactions without changing the rights attached to the assets.
The company currently holds more than $114 trillion in assets under custody, although this figure represents its existing custody business and not the value of securities being tokenized through the new service.
According to the announcement, 20 DTC participants have signed agreements to access the platform, including Bank of America, Barclays, BNP Paribas, Citadel Securities, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, State Street and UBS.
Other participants include Alpaca, Apex Clearing, Brown Brothers Harriman, Clear Street, DriveWealth, Edward Jones, Interchange Clearing, Marex, Mirae Asset Securities and Velocity Capital.
DTCC said further institutions will be onboarded gradually as the service expands.
The platform was developed with input from more than 150 firms participating in the DTC Digital Assets Solutions Industry Working Group.
Stellar integration follows earlier DTCC partnership
The planned Stellar deployment follows a partnership announced in May, when DTCC and the Stellar Development Foundation outlined plans to bring securities held in DTC custody onto the public blockchain.
At the time, the companies identified Russell 1000 stocks, exchange-traded funds tracking major indexes and U.S. Treasury securities among the assets expected to be supported.
Stellar’s involvement forms part of DTCC’s multichain strategy, which is designed to let institutions use tokenized securities across different blockchain networks while maintaining access to traditional market infrastructure.
As previously covered by crypto.news, BlackRock and JPMorgan participated in DTCC’s July tokenization pilot alongside Goldman Sachs, Vanguard, the New York Stock Exchange and other financial institutions.
During the exercise, more than 30 firms completed limited production transactions involving tokenized securities, including equity transfers, securities lending, collateral pledges and U.S. Treasury repurchase agreements.
The transactions took place across Canton and DTCC’s private Besu infrastructure, which are now supporting the operational service.
Stellar has continued attracting institutions developing tokenized financial products. Earlier on October 28, Securitize announced plans to add Stellar as its 17th supported blockchain for issuing and managing regulated assets.
The company said the integration would provide asset managers with another network for tokenized securities, although it did not identify a launch date or specific financial products.
SEC authorization supports tokenized securities rollout
DTCC’s service operates under a no-action letter issued by the U.S. Securities and Exchange Commission in December 2025.
The authorization permits DTC to tokenize eligible Russell 1000 securities, exchange-traded funds tracking major indexes and U.S. Treasury securities under specified conditions.
It provides a three-year regulatory framework for the service, with tokenized representations remaining connected to securities held through DTC’s established custody system.
The company has been preparing for the launch through production transactions and consultations with financial institutions throughout 2026.
In September, Ondo Finance became the first tokenization company to join DTCC’s Fund/SERV network through its regulated subsidiary, Oasis Pro Markets, connecting its securities infrastructure with a system widely used for mutual fund transactions.
Powered by WPeMatico
