DTCC launches tokenization

Just-in-time account funding may be just around the corner as tokenization provides real-time capabilities.

Banks, broker-dealers and clearing agencies may soon draw down capital buffers as the Depository Trust and Clearing Corporation (DTCC) moves closer to launching tokenization through its subsidiary, the Depository Trust Company (DTC).

DTC – which provides book-entry custody for more than $114 trillion of assets, such as municipal bonds, corporate bonds, corporate stocks and money market instruments, from the US and more than 131 other countries and territories – expects to launch a limited first phase of its token service in July. Full service is scheduled to launch in October.

In December 2025, the US Securities and Exchange Commission (SEC) granted the industry utility permission for a three-year pilot to process highly liquid assets, including components of the Russell 1000 index, exchange-traded funds that track other major US indices, and various Treasuries. The intention is to give tokenized securities the same rights, security and ownership rights as assets currently held in the custody of the DTC.

“Our vision is coming to fruition,” DTCC President and CEO Frank LaSalla said in Monday’s announcement. “Tokenization has the potential to reshape market structure by improving liquidity, transparency and efficiency.”

standard aligned

Tokenization – which creates digital representations of tangible assets like real estate or municipal bonds – is no longer just a finance-sector buzzword. More companies are weaving tokens into their corporate finance strategies, using them in a wide range of instruments including smart contracts, stablecoins, and tokenized US Treasury bills.

DTCC developed the tokenization platform in collaboration with the DTCC Industry Working Group, comprised of over 50 custodians, asset managers, broker-dealers and market infrastructure providers in traditional and decentralized finance. The group focuses on aligning standards and preparing market participants for new operations and settlement workflows.

Despite the fundamental milestone, the near-term implications for corporate treasurers may be limited.

“I don’t see any material benefits for CFOs yet,” said David Easthope, senior analyst and head of fintech research at Coalition Greenwich. “The more immediate value proposition is coming from stablecoins, not tokenized securities.” The benefits for issuers and their representatives, such as CFOs and treasurers, “are far ahead of the curve in the technology cycle we’re in,” he said.