DTCC Tokenizes U.S. Treasury Securities on Canton Network

Source: Coinspaidmedia Original Title: DTCC Tokenizes U.S. Treasury Securities on Canton Network Original Link: https://coinspaidmedia.com/news/dtcc-launches-us-treasury-tokenization-service/ The Depository Trust & Clearing Corporation (DTCC) entered into an agreement with Digital Asset Holdings to issue tokenized U.S. Treasuries on the Canton Network blockchain held in custody at the Depository Trust Company (DTC).

DTCC, one of the world’s largest post-trade service providers, announced the partnership with blockchain company Digital Asset and the launch of a real-world asset tokenization service based on the Canton Network. As part of the initiative, DTCC will issue tokens backed by a portion of U.S. Treasury securities held in custody at DTC, a DTCC subsidiary.

In 2024, DTCC successfully tested the use of tokenized U.S. Treasury securities as collateral, leveraging Digital Asset’s Canton Network blockchain.

Implementation Timeline

The project will be implemented in stages. In the first phase, participants plan to deploy an MVP in a controlled environment in H1 2026. Later, the scope and functionality of the solution are expected to expand based on client interest. For asset tokenization, DTCC also plans to use the ComposerX solution, which enables the integration of traditional and decentralized infrastructure within the DTCC ecosystem.

Regulatory Approval

The launch was approved by the U.S. Securities and Exchange Commission (SEC), which issued a no-action letter to DTC. This effectively authorizes the corporation to implement and operate a service for tokenizing RWAs held in custody.

Industry Leadership

According to Frank La Salla, President and CEO of DTCC, tokenization of Treasuries can improve operational efficiency, reduce risks, and enhance capital utilization, including for market makers and hedge funds. Yuval Rooz, Co-Founder and CEO of Digital Asset, added that the initiative is intended to lay the groundwork for future innovation by opening new opportunities to expand liquidity and improve operations.

As part of the partnership, DTCC will also take on a key role in the decentralized governance of the Canton Network by joining the Canton Foundation leadership as a co-chair alongside Euroclear. This new status will allow the company to participate in shaping industry standards for decentralized financial infrastructure.

DTCC’s Scale and Experience

DTCC has supported global post-trade infrastructure for more than 50 years. In 2024, its subsidiaries processed securities transactions totaling $3.7 quadrillion, while its depository division provided custody and asset servicing for securities issued in over 150 countries with a total value of $99 trillion.

Broader Blockchain Initiatives

DTCC consistently explored the use of blockchain solutions to improve the efficiency of financial infrastructure. The company participated in several pilot projects on the Canton Network, including real-time U.S. Treasury-backed financing with settlement in USDC. DTCC also tested blockchain solutions for data management and exchange in collaboration with Chainlink, analyzed settlement models for tokenized assets with SWIFT, and led a working group aimed at building a global ecosystem for the tokenization of financial instruments.