Key Takeaways
- The Depository Trust and Clearing Company (DTC) has received approval to pilot a securities tokenization scheme.
- DTCC will now establish standards that could define the future of tokenization.
- Participants in the tokenization pilot are expected to receive a list of approved blockchains.
With regulatory approval to develop a securities tokenization program, the Depository Trust and Clearing Corporation (DTCC) is set to define blockchain standards that could shape the future development of the technology.
As blockchains compete for dominance in the sector, the Canton Network has scored an early victory, being selected over established giants like Ethereum to power DTCC’s tokenized Treasury pilot.
Tokenization at the Heart of U.S. Financial Infrastructure
Some of the first tokenized securities in the U.S. include money market funds, such as BlackRock’s BUIDL and JPMorgan’s MONY. But although these are real, regulated products, they exist outside of DTCC clearing and settlement.
Until now, blockchain-powered issuance and settlement have coexisted as parallel rails that remain subordinate to the core infrastructure.
With a no-action letter from the Securities and Exchange Commission (SEC), however, DTCC is poised to integrate tokenization into the core of the American financial system.
Establishing Blockchain Standards
As the United States’ primary central securities depository, nearly every transfer of U.S. equities, corporate bonds, or notes passes through DTCC, which processed transactions worth approximately $3 quadrillion in 2023.
When it sets standards, they have significant implications for capital markets worldwide.
In other words, the future of securities tokenization—questions like which blockchains will be approved and what kind of information tokens must be inscribed with—now rests with DTCC.
Rather than prescribing a particular blockchain, the SEC has tasked DTCC with defining objective technology standards that platforms must meet.
In practice, however, the organization will maintain a list of approved blockchains that meet its criteria.
DTCC Selects Canton Network to Tokenize Treasuries
In a press release shared with CCN, DTCC announced plans to mint U.S. Treasury securities custodied at its subsidiary, the Depositary Trust Company, as digital assets on the Canton Network.
A subset of Treasuries will be tokenized in a “controlled production environment” during the first half of 2026, the announcement said.
While Ethereum has attracted the largest asset managers, the Canton Network is a strong contender in the tokenization race.
The protocol was designed to comply with regulatory requirements, integrating privacy features and configurable access permissions that are not inherent to traditional blockchains.
In cases where the blockchain functions as a record-keeping layer rather than a custodial platform, assets worth nearly $400 billion are registered on Canton—more than ten times the value of all tokenized assets on Ethereum.
Now, with the DTCC’s endorsement, the network is poised to secure a position in the $38 trillion market for U.S. Treasuries.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
