DTCC to Tokenize U.S. Treasuries on Canton Network
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The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, announced yesterday that it is teaming up with Digital Asset Holdings and Canton Network. The announcement explained that the goal of the partnership is to tokenize the Depository Trust Company (DTC)-custodied US treasury securities on the Canton Network.
Commenting further, the announcement said that the new partnership reflects Digital Asset’s and DTCC’s mutual commitment to pioneering digital transformation across capital markets.
It is also worth noting that the partnership announcement came after DTC’s recent receipt of a No-Action Letter from the US Securities and Exchange Commission (SEC) to implement and operate a new service to tokenize real-world, DTC-custodied assets.
More importantly, thanks to the new partnership, DTCC intends to enable a subset of US Treasury securities custodied at DTC, and allow them to be minted on the Canton Network. The partners are collaborating towards an MVP in a controlled production environment, expected in H1 2026.
However, they are also planning to increase the size and scope of the project in the second part of the year and beyond, if there is enough client interest.
The announcement has noted that DTCC will leverage its ComposerX suite of platforms to make the tokenization of US Treasury securities custodied at DTC possible.
Bringing Real-World, High-Value Tokenization Use Cases To Users
Commenting on the matter, DTCC’s CEO, Frank La Salla, said that the firm’s partnership with Digital Asset and the Canton Network is a strategic step forward. Together, they will collaborate across the industry to build a digital infrastructure that will act as a bridge between digital and traditional financial ecosystems and provide unmatched scalability and safety.
“This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with U.S. Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets across network providers,” he added.
Meanwhile, Digital Asset’s CEO and co-founder, Yuval Rooz, also commented by saying that the partnership reflects the collective ambition of leading market participants to create future-proof, interoperable financial ecosystems.
“DTCC’s leadership in this space not only accelerates industry adoption but establishes a foundation for meaningful innovation, unlocking new liquidity opportunities, products, and operational improvements.”
The roadmap for the joint initiative is expected to unfold over several years, but the partners plan to start delivering tangible benefits to market participants during the very first phase, by enabling access to digitized financial instruments in a regulated, secure environment.
