DTCC Token Service Launches With 20 Participants, 34 Securities

The Depository Trust Company, DTCC’s securities depository, launched the service to let eligible DTC Participants convert certain securities into tokens and transfer them between registered wallets.

Conversion orders can be submitted through an online interface or application programming interface from 2 a.m. to 6 p.m. Eastern time on business days. DTCC is targeting completion within 15 minutes.

Securities that have already been converted into tokens can move between DTC-registered wallets 24 hours a day, seven days a week, when the wallets use the same blockchain. A firm planning a weekend transfer must complete the conversion during a business-day window and hold the required tokens in advance.

The service includes selected third-party wallets and transfer restrictions. The receiving wallet must be registered and able to accept the relevant token. Initial blockchain connections include the Canton Network and DTCC’s private Besu network.

The 34 securities available at launch include selected Russell 1000 stocks, exchange-traded funds and U.S. Treasuries. The tokens represent entitlements to securities held at DTC. The underlying legal rights, economic interests and protections remain in place, while DTC keeps the official books and records.

A token transfer does not establish that the recipient will accept the token as collateral or confirm that a related cash payment has been completed. The service also does not create continuous stock trading. Treasury distributions and maturity payments will be made in fiat currency to Participants’ traditional accounts at launch.

DTCC’s roadmap lists additional settlement and collateral functions, including on-chain netting and digital cash, for 2027 and later. Participation is voluntary and limited to eligible DTC Participants.