DTCC has signed a major partnership with the Canton Network and Digital Asset to move a slice of Wall Street’s core infrastructure on-chain, starting with tokenized U.S. Treasuries custodied at its depository arm, DTC.
Treasuries on Canton Lead the Way
Under the deal, DTCC will tokenize a subset of U.S. Treasury securities that sit in custody at The Depository Trust Company and mint them as on-chain assets on the Canton Network, a privacy‑focused, permissioned blockchain built by Digital Asset.
The initial rollout targets a minimum viable product in a controlled production environment in the first half of 2026, with plans to scale to more securities and participants if clients show demand.
DTCC will use its ComposerX suite to handle token creation and lifecycle management, ensuring that each tokenized Treasury represents a legally equivalent claim on the underlying security held at DTC.
The move follows a recent no‑action letter from the U.S. Securities and Exchange Commission that authorizes DTCC to operate a real‑world asset tokenization service for DTC‑custodied instruments, giving the clearing giant regulatory cover for the experiment.
DTCC Pushes for Modernized Post-Trade Plumbing
DTCC CEO Frank La Salla frames the initiative as the first phase of a multi‑year strategy to hold a wide range of DTC‑eligible assets, equities, ETFs, and index products, as well as Treasuries, directly on-chain across multiple network providers.
The goal is to build a shared, interoperable infrastructure layer that preserves institutional requirements for privacy, compliance, and control while enabling faster settlement, greater collateral mobility, and lower operational risk.
Canton’s design, which connects independent institutional chains while keeping their data silos private, gives DTCC a way to experiment without pushing sensitive position data onto a fully public blockchain. If successful, tokenized versions of Treasuries and other instruments could support intraday collateral moves, atomic delivery‑versus‑payment across platforms, and more granular liquidity management for dealers and hedge funds.
As part of the partnership, DTCC will also take a leadership role in Canton’s governance, serving as co‑chair alongside Euroclear. That position allows the clearing utility that processes more than 3.7 quadrillion dollars in transactions annually to help set standards for institutional DeFi rails, signalling that tokenization, in this vision, belongs inside the same risk frameworks that already anchor global capital markets.
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