DTCC and Digital Asset Partner to Tokenize U.S. Treasury Securities on the Canton Network

TLDR

• DTCC, Digital Asset, and Canton Network partner to tokenize U.S. Treasury securities held by DTC.
• The project aims for an MVP in 2026, with plans to expand based on client demand.
• DTCC’s ComposerX suite will enable the tokenization of U.S. Treasury securities.
• The partnership aims to bridge traditional and digital finance, enhancing liquidity and operational efficiency.
• The phased approach ensures flexibility and regulatory compliance as the project scales.

The Depository Trust & Clearing Corporation (DTCC) has partnered with Digital Asset Holdings and the Canton Network to tokenize U.S. Treasury securities. This partnership will use the Canton Network to enable the tokenization of assets custodied by The Depository Trust Company (DTC). The collaboration follows DTC’s receipt of a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), allowing the tokenization of real-world, DTC-custodied assets.

Tokenizing U.S. Treasury Securities on the Canton Network

The partnership will initially focus on tokenizing a subset of U.S. Treasury securities held by DTC. This will be done through the Canton Network, leveraging Digital Asset’s platform. DTCC plans to create a controlled production environment for the tokenized assets, targeting an MVP in the first half of 2026.

The project will expand based on client demand, with plans to extend its scope over time. DTCC will utilize its ComposerX suite of platforms to facilitate the tokenization of the U.S. Treasury securities. This move will integrate traditional financial assets with digital infrastructure, creating new pathways for asset management.

Collaborating to Build a Digital Infrastructure

Frank La Salla, CEO of DTCC, emphasized that the partnership represents a strategic step towards bridging traditional and digital finance. He stated, “This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market.” DTCC’s goal is to establish a scalable and safe digital infrastructure that enhances liquidity and operational efficiency across market participants.

Digital Asset’s CEO, Yuval Rooz, highlighted the partnership’s potential to unlock liquidity opportunities and innovative products. The goal is to develop interoperable financial ecosystems that foster industry adoption. This initiative will bring transformative improvements to market infrastructure, increasing transparency and operational efficiency.

Phased Approach to Implement Tokenized Securities

The partnership’s phased approach will ensure flexibility and regulatory compliance as it progresses. The initial focus will be on tokenizing U.S. Treasury securities, with plans to scale the project as interest grows. The goal is to provide a secure and regulated environment for market participants, enabling them to benefit from digitized financial instruments.

Brian Steele, Managing Director at DTCC, explained that this project builds on previous collateral mobility experiments. The effort aims to enhance liquidity, operational efficiency, and market transparency. The long-term vision includes integrating decentralized technologies while ensuring the safety and resilience of traditional markets.

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