DTCC plans to tokenize US Treasury securities on the Canton blockchain after receiving SEC approval.
- DTCC gains SEC approval to begin tokenization service on blockchains.
- US Treasury bills and ETFs will be tokenized on the Canton Network.
- Project aims to expand over time to include more financial assets.
DTCC Moves to Tokenize US Treasury Securities
The Depository Trust and Clearing Corporation (DTCC) will start putting US Treasurys on a blockchain. The company plans to use the Canton Network, a private blockchain created by Digital Asset. This move comes after the Securities and Exchange Commission (SEC) gave a special letter saying DTCC could do this without facing penalties.
Plan Covers More Than Treasury Bills
DTCC said the first step is to tokenize only a part of the US Treasury securities kept at its Depository Trust Company. Later, it plans to include more DTC-eligible assets, such as exchange-traded funds (ETFs) and corporate bonds. These assets are traded in the US and include funds that track big stock indexes like the Russell 1000.
Project Timeline and Future Growth
DTCC, Digital Asset, and other partners hope to launch a version of the product in a test setting by the first half of 2026. After that, they may grow the project based on what clients want. The roadmap is designed to expand slowly and carefully over several years.
Joining the Canton Network Governance
DTCC will join the leadership of the Canton Network’s governance body. The company will work with Euroclear and help shape how the network grows and functions. Canton is designed as a permissioned blockchain, meaning only approved users can join.
Market Experts Expect Changes Over Time
The SEC said DTCC’s tokenization plan is an “important step” toward onchain financial markets. Experts say the shift to tokenization will not change markets overnight. According to Greg Cipolaro from NYDIG, fully using these digital assets in decentralized finance (DeFi) could take years. It will depend on better technology, clear rules, and how open blockchains become.
Source: cointelegraph.com
