The underlying securities remain on DTCC's centralized ledger while tokens represent ownership rights rather than standalone instruments.
Crypto News
The Depository Trust & Clearing Corporation has received Securities and Exchange Commission approval to test blockchain-based representations of U.S. Treasury securities through its subsidiary. The pilot program launches in partnership with Digital Asset and Canton Network following a recent no-action letter.
DTC participants will convert Treasury entitlements held at the depository into tokens on a permissioned blockchain during the limited trial. The underlying securities remain on DTCC's centralized ledger while tokens represent ownership rights rather than standalone instruments.
The initial test runs in the first half of 2026 using DTCC's ComposerX platform alongside Canton Network's compliance-focused infrastructure. Expansion depends on regulatory conditions and client demand after the trial period concludes.
Bitcoin and traditional finance convergence continues as tokenized Treasury products reach approximately $9 billion in outstanding value, up from $2.5 billion one year ago. The growth reflects investor appetite for dollar-denominated yield that settles through blockchain rails.
DTCC President of Clearing & Securities Services Brian Steele said the pilot enables participants to explore tokenization while preserving legal certainty and market safeguards. The framework maintains existing infrastructure rather than replacing current systems.
Canton Network provides restricted transfer capabilities between approved participants through its permissioned design. Only authorized entities can access the tokenized Treasury representations during the pilot phase.
The SEC no-action letter permits DTCC to experiment with tokenizing specific security entitlements within narrowly defined parameters. The regulatory approval marks the first live test of on-chain assets directly tied to DTC custody under U.S. oversight.
Real-world asset tokenization has gained momentum across financial markets as institutions seek blockchain efficiency benefits. Treasury securities represent one of the largest segments due to their liquidity and creditworthiness.
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