Tokenized Stocks and Treasuries Go Live at the Core of US Markets

The firm that clears and settles most American stock and bond trades opened its tokenization platform on Wednesday. It runs on the Canton Network and on a private Besu blockchain. The first batch covers selected Russell 1000 companies, exchange traded funds and Treasury securities. A spokesperson said 34 securities qualify, worth about $30 trillion combined.

Banks Joining the Platform

Twenty institutions have signed on, including Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street and UBS. More are expected to follow. CEO Frank La Salla called the launch the result of years of work to place tokenized securities inside a regulated framework.

How the Tokens Work

Each token matches a security held at the Depository Trust Company, which keeps the official ownership records. Clients can create tokens during business hours, with a target of 15 minutes or less. After that, tokens can move between registered wallets at any hour within compliance rules. Because they represent real holdings, they keep the rights of the underlying assets, unlike synthetic tokens that only track a price.

Plans for 2027

DTCC intends to add Stellar and Circle’s Arc network, wider corporate action coverage, digital cash settlement and collateral use next year. Citi analysts forecast a $5.5 trillion tokenized securities market by 2030, while Nasdaq, NYSE and Intercontinental Exchange build their own systems.