DTCC Pushes U.S. Treasurys On-Chain as Tokenization Becomes Core Market Infrastructure

DTCC is moving U.S. Treasury securities on-chain, signaling a pivotal shift as regulated tokenization advances from concept to core market infrastructure, unlocking faster settlement, new liquidity pathways, and scalable blockchain adoption across global capital markets.

DTCC and Canton Network Advance Tokenized US Treasurys With SEC Clearance in Place

Blockchain-based market infrastructure is gaining momentum as major financial institutions accelerate adoption. The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure provider, on Dec. 17 unveiled a partnership with Digital Asset Holdings and the Canton Network to tokenize DTC-custodied U.S. Treasury securities, marking a significant expansion of on-chain financial market activity.

The initiative follows The Depository Trust Company’s recent receipt of a No-Action Letter from the U.S. Securities and Exchange Commission (SEC) allowing it to implement and operate a service for tokenizing real-world, DTC-custodied assets. The company explained that the initiative “represents the first step in DTCC’s broader strategy to make DTC-custodied assets available on-chain.” The announcement states:

With this partnership, DTCC plans, for the first time, to enable a subset of U.S. Treasury securities custodied at DTC to be minted on the Canton Network.

The organizations are working toward a minimum viable product in a controlled production environment during the first half of 2026, with plans to expand scope and scale based on client interest. DTCC will leverage its ComposerX platform suite to support issuance and lifecycle management while maintaining alignment with existing clearing and settlement processes.

The partnership positions tokenization as a practical upgrade to core market infrastructure rather than a limited pilot. Digital Asset Co-Founder and CEO Yuval Rooz described the collaboration as a foundation for interoperable financial ecosystems that can unlock new liquidity, product innovation, and operational improvements across capital markets. DTCC Managing Director Brian Steele, President of Clearing & Securities Services, explained that the objective is to enhance liquidity, operational efficiency, and market transparency for DTC participants while preserving regulatory compliance and market resiliency.

Canton Network shared on social media platform X: “Minting and using U.S. Treasuries on Canton is coming in 2026, enabling tokenized USTs to be exchanged in near-real-time with stablecoins and other digital assets – all with the privacy and controls regulated markets demand. A major unlock for global collateral mobility to accelerate settlement, reduce risk, and optimize balance sheets.”

The anticipated benefits align with DTCC’s own assessment as the company stated:

It is anticipated that adoption of tokenized securities could generate significant operational and financial efficiencies across market participants, including major market makers and hedge funds. The ability to streamline processes, reduce operational risk, and enhance capital efficiency is also anticipated to create a positive impact on balance sheets.

In parallel, DTCC will assume a leadership role within the Canton Network’s decentralized governance structure as co-chair of the Canton Foundation alongside Euroclear, reinforcing the view that regulated tokenization of U.S. Treasurys is moving toward scalable, market-ready infrastructure.