Key Highlights
- DTCC plans to tokenize the U.S. Treasury securities held at DTC on the Canton Network after getting approval from the U.S. SEC.
- The project will start in early 2026 with a test phase and may expand based on interest from market participants.
- DTCC will help lead the Canton Network by joining its governance team to help set standards for future digital financial systems.
DTCC has announced a partnership with Digital Asset Holdings and the Canton Network to bring U.S. Treasury securities onchain through tokenization, following regulatory approval from the U.S. Securities and Exchange Commission (SEC).
According to the announcement, the initiative will let a small group of U.S. Treasury securities held at DTCC’s subsidiary, the Depository Trust Company, be created as digital tokens on the Canton Network. Testing is expected to begin in the first half of 2026.
Bringing U.S. Treasurys onto the blockchain
The move comes after DTCC received a No-Action Letter from the SEC, which allows the firm to operate a new tokenization service without enforcement action, as long as it functions as described.
Additionally, the approval covers a defined group of highly liquid assets, including U.S. Treasury bills, bonds, notes, and some exchange-traded funds. DTCC said this clearance enables it to test and deploy tokenized securities in a regulated and controlled setting.
The Canton Network, built by Digital Asset, is a private blockchain designed for tokenization. It allows institutional firms to tokenize real-world assets like bonds and funds and make them tradable while keeping transaction details private and compliant with the law.
Digital Asset is backed by major firms such as BlackRock, Goldman Sachs, Nasdaq, and Citadel Securities. DTCC plans to use its ComposerX platforms to support the minting and handling of tokenized Treasury securities already held in custody.
The move marks yet another swift push by DTCC, which recently listed Bitwise Asset Management’s proposed spot Chainlink ETF under the ticker CLNK in its “active and pre-launch” filings. This follows closely on the heels of DTCC adding five spot XRP ETF proposals from issuers including Bitwise, Franklin Templeton, 21Shares, Canary Capital, and CoinShares to its pre-launch category just days earlier.
Both these initiatives occurred amid a broader wave of altcoin ETF preparations accelerated by the SEC’s adoption of generic listing standards to streamline reviews.
What this means for markets going forward
The project will begin with a minimum viable product in a controlled production environment. DTCC said the scope of the project will expand over time, depending on interest from market participants.
Frank LaSalla, CEO of DTCC, said the partnership “creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with U.S. Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets.”
DTCC will also take on a leadership role within the Canton Network. The firm will join the Canton Foundation as co-chair alongside Euroclear, which will allow it to help guide how the network develops and how shared rules are set for digital financial systems. DTCC added that tokenized securities may help firms lower costs and improve how capital is used over time.
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