DTCC Tokenization Service is Now Live
The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), has launched the DTCC Tokenization Service (DTS). The service brings tokenized securities into regulated financial markets via trusted, resilient and scalable market infrastructure. It strives to help investors move assets more efficiently, access new liquidity pools and mobilize collateral within minutes.
How the Service Works
DTS enables users to mint tokenized representations of real-world assets held at DTC. Eligible users can convert DTC-tokenized securities entitlements between traditional and tokenized forms and deliver them to their chosen digital wallets. These tokenized securities, also known as digital twins, keep the ownership rights, investor protections and economic entitlements of their traditional counterparts. DTC currently holds more than $114 trillion in assets under custody.
Participants for the Service
So far, 20 DTC Participants have signed agreements to access DTS. These include Alpaca, Apex Clearing Corporation, Barclays, Bank of America, BNP Paribas, Brown Brothers Harriman, Citadel Securities, Citi, Clear Street, DriveWealth, Edward Jones, Fidelity Investments, Interchange Clearing, J.P. Morgan, Marex, Mirae Asset Securities (USA) Inc., Morgan Stanley, State Street, UBS and Velocity Capital LLC. DTCC will onboard additional users on a rolling basis.
Interoperability
DTS uses a multi-network model that lets firms transact across traditional and digital environments. This approach enables market participants to convert and deploy assets in traditional and tokenized markets. It supports liquidity in traditional markets and expand access through tokenization. Currently, the service integrates with the Canton Network and DTCC’s private Besu network. DTCC plans to add more blockchain networks in 2027.
Also, DTCC has brought together a vaster digital asset ecosystem to improve interoperability and connectivity. Its collaborators and partners include BitGo Bank & Trust, N.A., Blockdaemon, Broadridge, DFNS, DRW, Fireblocks, HIFI, Kaleido, Matter Labs, Ondo, Prometheum Capital, Talos, Taurus, Tradeweb, Transcend and Virtu.
About DTCC
The Depository Trust & Clearing Corporation (DTCC) is a U.S.-based financial services company. It provides clearing, settlement, and information services for various securities, including equities, bonds, and derivatives. DTCC emerged from the merger of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). Both were founded in the 1970s to address the paperwork crisis in the securities industry.
Wrapping Up
The launch is a progress in integrating tokenized securities into regulated financial markets. DTCC strives to support greater connectivity between traditional and digital asset markets.
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