DTCC pilots tokenized shares with BlackRock, Goldman, JPMorgan

DTCC has begun testing the tokenization of stocks and Treasurys with nearly 40 financial firms, marking a huge step toward blockchain-based settlement on Wall Street. The program will allow eligible securities to move between traditional and tokenized formats while retaining full legal rights.

The pilot includes participants such as JPMorgan, Goldman Sachs, BlackRock, Vanguard, and the New York Stock Exchange, which will tokenize selected assets held at DTCC before settling transactions on blockchain networks.

The first basket includes Microsoft shares, Circle stock, major ETFs including QQQ and SPY, Treasury ETFs, and US government bonds. DTCC plans to officially launch the service in October, allowing firms to tokenize eligible securities held at the clearinghouse.

DTCC’s approach differs from tokenized stock wrappers by creating blockchain-native representations that are legally equivalent to the underlying securities. Token holders retain the same ownership, dividend, and governance rights, and the assets can be converted back into conventional securities. Settlement will take place on either Hyperledger Besu or the Canton Network.

The pilot comes amid growing adoption of tokenization across traditional finance and follows SEC clearance for DTCC’s service last year.

This is a developing story.