Morgan Stanley has tokenized U.S. stocks and Treasuries through the Depository Trust & Clearing Corporation’s tokenization service, which went live on October 28. The service converts securities held by the Depository Trust Company into tokens backed one-for-one by the assets in custody, with the same legal rights and protections. Launched with 34 securities, the platform currently covers U.S. Treasuries, Russell 1000 stocks and ETFs tracking major indices under an SEC no-action letter for DTC. By the launch, 20 DTC participants, including Morgan Stanley, J.P. Morgan, Citi, Bank of America and UBS, had signed agreements to use the service, following production trades with more than 30 firms on July 15. The tokens currently run on Canton Network and DTCC’s private Besu network, while Stellar and Circle’s Arc are planned for 2027; Morgan Stanley also moved the target for supporting tokenized stocks on its alternative trading system to the first quarter of 2027.
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