- DTCC partners with Digital Asset and Canton Network for tokenizing assets.
- The move enables tokenization of DTC-custodied assets, starting with US Treasury securities.
- This development is built on DTCC’s recent SEC approval for RWA tokenization.
The Depository Trust & Clearing Corporation (DTCC) is making significant strides in blockchain technology, partnering with Digital Asset and the Canton Network. This strategic collaboration focuses on tokenizing assets, transforming the way in which they are custodied, managed, and traded.
Significantly, this development marks a major milestone in the adoption of blockchain in capital markets. DTCC, the premier post-trade market infrastructure for the global financial services industry, leverages the power of distributed ledger to explore asset tokenization.
DTCC Pioneers Blockchain-Based Tokenization in Capital Markets
According to a press release, DTCC has partnered with Digital Asset and Canton Network to bring tokenization to the Depositary Trust Company (DTC)-custodied assets on the Canton Network. This move aims to pioneer digital transformation in capital markets, building on DTCC’s recent SEC-approved service to tokenize real-world assets.
Notably, this partnership will enable tokenization of DTC-custodied assets, starting with US Treasury securities. For this, the platform will utilize Canton Network, enhancing liquidity, operational efficiency, and market transparency. Digital Asset CEO Yuval Rooz stated,
“This partnership reflects the collective ambition of leading market participants to create future-proof, interoperable financial ecosystems. DTCC’s leadership in this space not only accelerates industry adoption but establishes a foundation for meaningful innovation, unlocking new liquidity opportunities, products, and operational improvements.”
The organizations are working towards launching a minimum viable product (MVP) in a controlled production environment in the first half of 2026. Plans are in place to increase the project’s size and scope in the following months, contingent on client interest. To facilitate this initiative, DTCC will utilize its ComposerX suite of platforms to enable the tokenization of US Treasury securities custodied at DTC.
Although the platforms have confirmed their joint venture, the partnership is set to roll out over multiple years. The initial phase will be focusing on delivering tangible benefits to market participants. Once realized, this collaboration will provide market participants with access to digitised financial instruments in a secure and regulated environment. The move is also expected to enhance liquidity, operational efficiency, and market transparency, ultimately benefiting market participants and driving growth in the financial sector.
“Our goal is to enable the industry and DTC Participants to take advantage of tokenization capabilities that enhance liquidity, operational efficiency and market transparency,” stated Brian Steele, Managing Director at DTCC. Steele added,
“This effort builds upon DTCC’s prior collateral mobility experiment and is part of the firm’s broader strategy to advance a secure, transparent and interoperable digital asset ecosystem that leverages the full potential of blockchain technology across network providers while ensuring the resiliency and safety of traditional markets.”
Blockchain Adoption in Commodities Market Gains Momentum
Interestingly, the collaboration between DTCC and Canton Network is the latest example of the growing integration of blockchain technology in the commodities market. As institutions are largely investing in tokenized commodities, more and more platforms are embracing blockchain. The progressive approach from global governments, with clear regulatory standards, is an added advantage to this adoption.
As Times of Blockchain recently reported, DMCC’s collaboration with Crypto.com is one such example. Dubai’s DMCC has joined hands with Crypto.com to leverage its blockchain technology to enhance trade infrastructure. The move aims to create a more transparent and efficient commodities market.
