The Depository Trust Company, part of DTCC, launched a tokenization service for authorized participants on October 28. The system creates tokenized representations of securities already held in DTC custody without issuing unbacked substitutes, preserving investors’ legal entitlements and the depositary’s established controls. The initial launch uses the Canton Network and DTCC’s private Besu environment, with additional network connections planned for 2027. The service could improve collateral mobility, capital efficiency and access to liquidity, but adoption will depend on eligible assets, transfer restrictions, cash settlement and end-to-end transaction capabilities. It moves institutional blockchain use into regulated market infrastructure without automatically creating buying pressure for a native cryptocurrency.
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