20 institutions join DTCC token service, 34 securities eligible

The Depository Trust Company launched its Tokenization Service on Oct. 28, allowing eligible institutions to transfer tokenized securities over weekends. At launch, 20 participants signed access agreements, with conversion orders available from 2 a.m. to 6 p.m. Eastern time on business days, targeting completion within 15 minutes. Tokenized securities can transfer 24/7 between DTC-registered wallets on the same blockchain. Firms relying on conversion for weekend transfers must prepare their token inventory during business hours. Participation is voluntary and limited to eligible DTC Participants, with transfer restrictions based on registered third-party wallets. DTCC's product page lists 34 securities available for tokenization, including select Russell 1000 equities, exchange-traded funds, and US Treasuries. Tokens represent entitlements to securities held at DTC, retaining legal rights and economic interests. Cash and collateral arrangements are separate; a token transfer does not confirm collateral acceptance or cash payment completion. DTCC's roadmap includes settlement and collateral enhancements for 2027 and beyond, while Treasury distributions currently go to Participants' traditional accounts.

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