Morgan Stanley is among the first banks to tokenize U.S. stocks and Treasury securities through the DTCC Tokenization Service, launched on October 28. The service converts securities held at DTC into “digital twins” that retain the same ownership rights, investor protections and economic entitlements as the original securities. The tokens currently operate on the Canton Network and DTCC’s private Besu network, with additional blockchains planned for 2027. Twenty companies have joined the initiative, including Bank of America, Citi, J.P. Morgan, Fidelity Investments, Citadel Securities and UBS, while the service was developed with input from more than 150 firms. The approach uses Wall Street’s existing financial infrastructure and enables firms to move collateral or access new sources of liquidity within minutes, in a market that remains young and less liquid than traditional markets.
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