DTCC, Digital Asset and Canton Network launch US Treasury tokenisation initiative

The Depository Trust & Clearing Corporation (DTCC), the post-trade market infrastructure for the global financial services industry, together with Digital Asset Holdings (Digital Asset) and the Canton Network, has announced a new partnership to enable the tokenisation of The Depository Trust Company (DTC)-custodied assets on the Canton Network.

The partnership reflects DTCC’s and Digital Asset’s shared commitment to advancing digital transformation across capital markets. The announcement follows DTC’s recent receipt of a no-action letter from the US Securities and Exchange Commission (SEC), which permits the implementation and operation of a new service to tokenise real-world assets custodied at DTC.

Under the partnership, DTCC plans, for the first time, to enable a subset of US Treasury securities held at DTC to be minted on the Canton Network. The organisations are targeting a minimum viable product (MVP) in a controlled production environment in the first half of 2026, with plans to expand the size and scope of the initiative in subsequent months, subject to client interest. DTCC will leverage its ComposerX suite of platforms to support the tokenisation of US Treasury securities custodied at DTC.

“DTCC’s partnership with Digital Asset and the Canton Network is a strategic step forward as we collaborate across the industry to build a digital infrastructure that seamlessly bridges traditional and digital financial ecosystems while delivering scalability and safety,” said Frank La Salla, chief executive officer of DTCC. “This collaboration establishes a roadmap to bring real-world, high-value tokenisation use cases to market, starting with US Treasury securities and eventually extending to a broader range of DTC-eligible assets across network providers.”

Yuval Rooz, co-founder and chief executive officer of Digital Asset, said the initiative reflected the shared ambition of leading market participants to create interoperable and future-ready financial ecosystems. “DTCC’s leadership in this space accelerates industry adoption and lays the foundation for meaningful innovation, unlocking new liquidity opportunities, products and operational efficiencies,” he said.

While the broader DTCC, Digital Asset and Canton Network partnership roadmap is expected to unfold over several years, the initial phase is designed to deliver tangible benefits by providing market participants with access to digitised financial instruments in a secure and regulated environment. The phased approach is intended to ensure flexibility and adaptability, enabling participants to adopt decentralised technologies while remaining aligned with regulatory requirements.

“Our objective is to enable the industry and DTC participants to take advantage of tokenisation capabilities that enhance liquidity, operational efficiency and market transparency,” said Brian Steele, managing director and president of clearing and securities services at DTCC. “We welcome the opportunity to partner with Digital Asset and the Canton Network to bring this first production-environment activity live. This initiative builds on DTCC’s prior collateral mobility experiment and forms part of our broader strategy to advance a secure, transparent and interoperable digital asset ecosystem that leverages blockchain technology across network providers, while preserving the resiliency and safety of traditional markets.”

DTCC said the adoption of tokenised securities is expected to generate meaningful operational and financial efficiencies for market participants, including major market makers and hedge funds. Streamlined processes, reduced operational risk and improved capital efficiency are also expected to support balance-sheet optimisation.

In addition to the tokenisation initiative, DTCC will assume a leadership role within the Canton Network’s decentralised governance framework, joining the Canton Foundation as co-chair alongside Euroclear. In this capacity, DTCC will participate in the development of industry-wide standards for decentralised financial market infrastructure.

Re-disseminated by Wealth and Society