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The Depository Trust Company, the securities depository unit of DTCC, launched its Tokenization Service on Oct. 28, enabling continuous token transfers between registered wallets on the same blockchain. The service provides eligible institutions with a mechanism to move tokenized securities outside of traditional business hours, specifically allowing transfers over weekends.
Launch Scope and Participation
DTCC stated that 20 Participants had signed access agreements at the time of launch. Participation in the service is voluntary and restricted to eligible DTC Participants. The launch scope includes the registration of select third-party wallets and incorporates specific transfer restrictions. Consequently, the ability to execute a weekend transfer depends on the receiving wallet being registered within the system.
At launch, DTCC’s live product page lists 34 securities available for tokenization. These eligible classes cover select Russell 1000 equities, exchange-traded funds, and US Treasuries. The tokens issued through the service represent entitlements to securities held at DTC. They retain the underlying legal rights, economic interests, and protections associated with the original securities. DTC continues to maintain the official books and records for these assets, even as tokens move between registered wallets.
Operational Mechanics and Limitations
The service enables already-tokenized securities to move 24/7 between DTC-registered wallets on the same blockchain. However, the conversion of traditional securities into tokens is subject to specific business-day hours. Conversion orders are accepted through the service’s interface and API from 2 a.m. to 6 p.m. Eastern time on business days. DTCC targets the completion of these conversion orders within 15 minutes.
Firms relying on conversion to supply tokens for weekend transfers must prepare their token inventory during a preceding business-day window. The initial connections for the service are Canton Network and its private Besu network. While the service facilitates continuous transfer availability, this does not establish continuous stock trading. Furthermore, the movement of a token to another wallet does not by itself establish that the recipient accepts it as collateral or that an associated cash payment has completed.
Settlement and collateral enhancements, including on-chain netting and digital cash, are placed on an indicative roadmap for 2027 and beyond. At the current launch stage, Treasury distributions and maturity payments are processed in fiat currency to Participants’ traditional accounts. With the service now live, a weekend transfer plan requires eligible tokens in registered wallets, an accepting recipient, and any necessary payment arrangements to be in place prior to the transfer.
Frequently Asked Questions
How many securities are available to tokenize at launch?
DTCC’s live product page lists 34 securities available to tokenize at launch. These include select Russell 1000 equities, exchange-traded funds, and US Treasuries.
What are the conversion order hours for the DTCC Tokenization Service?
Conversion orders are accepted from 2 a.m. to 6 p.m. Eastern time on business days. The service targets completion of these orders within 15 minutes.
