DTC launches tokenization service with 34 eligible securities

The Depository Trust Company (DTC), DTCC's securities depository, introduced its Tokenization Service on October 28, enabling eligible institutions to transfer tokenized securities over weekends. DTCC said 20 DTC Participants had signed agreements for access when the service launched. DTCC's live product page identifies 34 securities eligible for tokenization at launch. Eligible asset classes include selected Russell 1000 equities, exchange-traded funds and US Treasuries.

DTCC said the launch configuration accepts conversion orders through the service interface and API between 2 a.m. and 6 p.m. Eastern time on business days. DTCC said the service aims to finish conversions within 15 minutes. Securities already represented as tokens can transfer around the clock between DTC-registered wallets operating on one blockchain. A firm that needs conversion before a weekend transfer therefore needs to prepare token inventory during an earlier business-day window.

Eligible DTC Participants can choose whether to use the service. The initial service supports registration of selected third-party wallets and applies restrictions to transfers. A weekend transfer also requires the receiving wallet to be registered. DTCC's launch announcement names Canton Network and DTCC's private Besu network as the first connections.

The tokens confer entitlements to securities maintained at DTC. The underlying securities' legal rights, economic interests and protections remain intact. DTC maintains the authoritative books and records when tokens pass between registered wallets.

Delivery to a wallet does not establish that the recipient accepts the token as collateral or that a related cash payment has finished. Round-the-clock token transfers also do not mean that stocks trade continuously. DTCC's scope sheet places settlement and collateral improvements on a tentative roadmap covering 2027 and later years. The planned improvements include on-chain netting and digital cash. Treasury distributions and maturity payments initially reach Participants' conventional accounts in fiat currency. A workable weekend transfer requires eligible tokens held in registered wallets, a recipient willing to accept the tokens and any necessary payment arrangements.