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DTCC moves Wall Street tokenization into live trades

DTCC processed live trades using tokenized securities held at DTC, a step toward putting blockchain inside core market infrastructure while preserving investor rights.

Uruguay Can Editorial

DTCC moves Wall Street tokenization into live trades

U.S. securities have long moved through centralized post-trade systems; on July 15, DTCC processed real production trades using tokens representing securities held at DTC, bringing blockchain into core market plumbing. DTCC’s announcement says more than 30 firms took part, and the trades tested whether those digital representations could work in real market workflows.

What did DTCC put on-chain?

DTCC converted securities held by its subsidiary, the Depository Trust Company, into tokens that participants used in transactions. The tests covered U.S. Treasury repo and delivery-versus-payment trades, equity trades, securities lending, collateral pledges and token transfers. The networks were LFDT’s Besu, a private network, and Canton, which DTCC described as public.

These tokens represent securities held in DTC custody; DTCC says they can be converted between traditional and tokenized forms. That matters because the digital version is designed to retain the underlying asset’s ownership rights, entitlements and investor protections. DTC holds assets valued at more than $114 trillion, according to DTCC.

When could firms use the service?

DTCC said the July trades set the stage for a planned October 2026 launch of its tokenization service. Its current service information describes production availability in the fourth quarter, with launch support expected for selected eligible securities and connections to Canton and Hyperledger Besu. The service is voluntary and limited to eligible DTC participants and their clients under an SEC no-action letter.

What changes for investors?

For now, the tests show what market participants can do with tokenized securities inside controlled workflows; they do not mean all stocks can trade freely on public blockchains. Axios reported this week from Money 20/20 that financial institutions are moving from discussing blockchain to working out how to connect services for customers. Wider use will depend on firms linking their systems, while keeping the securities tied to the protections and infrastructure they already rely on.

Sources