DTCC Launches Tokenization for $30 Trillion in Assets

The Depository Trust & Clearing Corporation launched its asset tokenization service this Wednesday. The platform operates on the Canton Network and the private Besu network to digitize stocks, funds, and US Treasury bonds.

The project initially covers 34 assets from the Russell 1000 index and ETFs. The market value of the eligible securities reaches $30 trillion. Institutions such as Bank of America, Barclays, and Citi are among the 20 firms that have joined the system.

The initiative uses tokens backed one-to-one by assets held in custody by the company itself. The technology allows these records to move between digital wallets throughout the day. The expansion plan includes integration with the Stellar network and Circle's Arc system for next year.

Integrating blockchain into Wall Street's core infrastructure seeks to facilitate the transfer and use of financial collateral. The adoption of this technology by regulated entities aims to make digital assets an integral part of the daily operations of global markets.

The migration of traditional assets to blockchain records increases settlement efficiency and can reduce friction in global transactions. This trend is expected to raise institutional interest in digital assets as a store of value or collateral.