DTCC runs limited tokenized stock and Treasury trades

The Depository Trust & Clearing Corp. began limited production trades of tokenized stocks and U.S. Treasurys on Wednesday. JPMorgan converted part of its Invesco QQQ Trust holdings into tokens held at the depository, while BlackRock and Goldman Sachs participated in the trial.

The initial tokenized assets include slices of popular ETFs and individual names such as Microsoft, the Invesco QQQ Trust, the State Street SPDR S&P 500 ETF Trust and the iShares 0-3 Month Treasury Bond ETF, along with tokens tied to Circle. DTCC will record the tokens on its blockchain infrastructure and make them available for market activity. The tokens are intended to be interchangeable with conventional shares and to carry the same ownership, dividend and governance rights as the underlying securities rather than merely tracking performance.

Trades in the limited production run will support collateral transfers, repurchase (repo) transactions and equity trades. Settlements will occur on DTCC’s Hyperledger Besu network or on the Canton Network. JPMorgan retains the option to convert tokenized holdings back into traditional shares held at the depository.

DTCC began the limited production phase in July ahead of a broader service launch scheduled for October. The Securities and Exchange Commission authorized the depository subsidiary to offer tokenization for certain highly liquid assets on pre-approved blockchains under a three-year no-action letter issued last year. Nearly 40 financial firms and technology providers are part of the program’s industry working group, including asset managers, banks, trading platforms, custody providers and stablecoin issuers.

Frank La Salla, DTCC president and chief executive, called the tokenization of assets and digital blockchain usage a ‘megatrend' and emphasized the organization’s focus on system safety, resiliency and on finding ways to free up trapped liquidity using the technology. Eric Balchinas, a senior ETF analyst, wrote he is moving ‘a little more to a tokenized future' and expects adoption to occur gradually.

Market participants have pointed to possible benefits such as faster settlement and the potential for extended trading hours, including near-continuous markets. Some participants have also called for clearer regulatory safeguards as traditional custody and settlement systems are integrated with onchain infrastructure.

DTCC processed $4.7 quadrillion in securities transactions in 2025 and provided custody and asset servicing for $114 trillion in securities through its depository subsidiary.