The Depository Trust & Clearing Corporation (DTCC) has partnered with Digital Asset Holdings and the Canton Network to enable the tokenization of U.S. Treasury securities held at DTC.
This is the first step for DTCC towards making the assets held at DTC available on the chain, as traditional financial institutions continue to explore organized and scalable blockchain applications.
U.S. Treasury bonds will be minted and used on the Canton network in 2026, allowing for the near-instant exchange of tokenized Treasury bonds with stablecoins and other digital assets – while maintaining the privacy and controls required by regulated markets.
This is considered a major breakthrough for moving collateral globally.
#### Regulatory support enables on-chain expansion:
The partnership followed DTCC recently receiving a no-action letter from the U.S. Securities and Exchange Commission (SEC), allowing it to implement and operate a new service for tokenizing real assets held in the Depository Trust Company (DTC).
Regulatory clarity provides the foundation for DTCC's on-chain strategy, allowing the organization to experiment with blockchain-based workflows while maintaining compliance with current market collateral and regulatory standards.
Through collaboration with Digital Asset and the Canton network, DTCC aims to connect traditional post-trade infrastructure with distributed ledger technology in a regulated institutional environment.
#### U.S. Treasury bond tokenization experiment planned for 2026:
Under the partnership, DTCC plans to mint a subset of U.S. Treasury bonds held at DTC on the Canton network.
The organizations also target a viable minimum product in a regulated production environment during the first half of 2026.
Based on customer requests, DTCC expects to expand the scope and size of the project in later phases.
To support the initiative, DTCC will leverage its suite of proprietary ComposerX platforms, designed to facilitate tokenization and compliance across market architectures.
#### Building an enterprise-level digital infrastructure:
Frank LaSala, the CEO of DTCC, described the collaboration as a step towards creating a digital infrastructure that connects traditional and digital financial systems.
Direct quote: "This collaboration creates a roadmap to bring high-value real use cases for tokenization to market, starting with U.S. Treasury bonds and ultimately expanding to a broad spectrum of eligible assets at DTC."
#### Long-term vision for capital markets tokenization:
Yuval Rose, co-founder and CEO of Digital Asset, stated that the partnership highlights a collective ambition among market leaders to build compliant and future-ready financial systems.
It was noted that DTCC's participation could open new liquidity opportunities, products, and operational efficiencies across capital markets.
While a complete roadmap is expected to unfold over several years, the initial phase aims to deliver benefits to market participants by providing access to tokenized U.S. Treasury bonds in a regulated environment.
#### Why this matters:
This collaboration represents an important step towards integrating high-value traditional assets with blockchain technology in a regulated framework, enhancing global liquidity and efficiency in capital markets while maintaining necessary regulatory controls.
