Wall Street giant DTCC partners with Digital Asset to tokenize U.S. Treasury securities on the Canton Network, following SEC no-action letter approval.
The Depository Trust and Clearing Corporation has chosen the privacy-focused Canton Network as its blockchain partner for tokenizing U.S. Treasury securities, marking a watershed moment for institutional blockchain adoption.
On December 17, DTCC announced its partnership with Digital Asset, the firm behind the Canton Network, to tokenize U.S. Treasury securities custodied at DTC. The move follows a critical SEC no-action letter issued on December 11, which authorized DTCC to offer tokenization services on pre-approved blockchains for three years.
Digital Asset counts BlackRock, Blackstone, Nasdaq, S&P Global, Goldman Sachs, and Citadel Securities among its backers. The Canton Network is designed for privacy and interoperability, enabling compliant asset transfers between institutional participants.
DTCC anticipates rolling out the service in the second half of 2026, initially restricting eligible assets to U.S. Treasuries and constituents of the Russell 1000 Index.
This is the first time in U.S. history that tokenized security entitlements held through a central securities depository will be available on both public and private-permissioned blockchains. DTCC processes over $3 quadrillion in securities transactions annually, making its blockchain integration a significant validation of the technology.
SEC Commissioner Hester Peirce described the no-action letter as a critical enabler for building a secure, transparent, and interoperable digital asset ecosystem. The approval signals regulatory willingness to accommodate innovation within existing frameworks rather than requiring entirely new legislation.
The rollout timeline of 2026 gives market participants time to prepare infrastructure. Watch for additional blockchain networks seeking DTCC approval and expansion of eligible securities beyond Treasuries and Russell 1000 stocks. The success of this pilot could accelerate broader securities tokenization across global markets.
DTCC's selection of Canton Network represents institutional finance's most significant blockchain commitment to date, with Treasury tokenization potentially reshaping how securities are settled and transferred.
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