The U.S. Securities Clearing Corporation (DTCC) announced on Wednesday a collaboration with Digital Asset Holdings to enable the tokenization of assets held by the Depository Trust Company (DTC) on the public blockchain Canton Network. The two parties expect that U.S. Treasury securities held by DTC will be minted and put into use on Canton by 2026.
The announcement follows DTC's receipt last week of a "no-action letter" issued by the U.S. Securities and Exchange Commission (SEC), allowing it to implement a new service for tokenizing real-world assets (RWA) held by DTC. At the time, DTCC stated that it would tokenize "a set of highly liquid assets," including the Russell 1000 index, as well as ETFs tracking major indices, U.S. Treasury bills, bonds, and notes.
According to a press release issued on Wednesday, DTCC plans to allow a portion of U.S. Treasury bonds held in DTC custody to be minted on the Canton Network for the first time. All parties are working towards completing a minimum viable product (MVP) in a controlled operating environment in the first half of 2026, and plan to scale and scope the project in the coming months based on customer interest. DTCC will utilize its ComposerX platform suite to support the tokenization process of U.S. Treasury bonds held in DTC custody.
DTCC CEO Frank La Salla stated:
The collaboration between DTCC, Digital Asset, and Canton Network represents a strategic advancement. We are working with various industry participants to create a system that seamlessly connects traditional finance with the digital financial ecosystem, providing unparalleled scalability and security in digital infrastructure. This partnership also offers a roadmap for high-value real-world tokenization use cases, starting with U.S. Treasury bonds and ultimately expanding across different network providers and a wide range of DTC-eligible assets.
DTCC expects that the adoption of tokenized securities could bring significant operational and financial efficiencies among market participants, including major market makers and hedge funds. By streamlining processes, reducing operational risks, and enhancing capital efficiency, it is also anticipated to have a positive impact on balance sheets.
In addition to the tokenization initiative, DTCC will also play a leadership role in the decentralized governance structure of the Canton Network, joining the Canton Foundation and serving as co-chair with Euroclear. This new role will enable DTCC to actively participate in the development of industry-grade standards for decentralized financial infrastructure.
The design purpose of the Canton Network is to enable institutions to issue and trade tokenized real assets, such as bonds, loans, and funds on a shared ledger while balancing privacy and compliance requirements. According to reports, Digital Asset, the development company behind Canton, has garnered support from several Wall Street institutions, including BlackRock, Blackstone Group, Nasdaq, S&P Global, Goldman Sachs, and Citadel Securities.
After the announcement of the collaboration with DTCC, the price of Canton’s native token CC surged nearly 10% within a few hours, with a trading price of $0.076 before the deadline.
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