DTCC Launches Tokenization Service on Canton and Besu

The Depository Trust Clearing Corporation launched a service that lets eligible financial institutions tokenize certain securities held at its subsidiary, the Depository Trust Company, using the Canton Network and DTCC’s private Besu network. DTCC said 20 DTC participants have signed agreements to access the service. The agreements establish participation access, but do not show that the firms have begun live conversions. Banks and financial firms named among the participants include JPMorgan, Citi, Barclays, Morgan Stanley, Bank of America, Fidelity Investments, State Street and UBS. The service covers selected Russell 1000 stocks, exchange-traded funds tracking major indexes and U.S. Treasury securities. DTCC’s launch materials describe the eligible pool as 34 securities, while another account characterizes it as approximately 25 to 34 instruments. Each token is backed one-for-one by a security held at DTC, which retains the official ownership records. DTCC is targeting conversion times of 15 minutes or less. Tokens can move between registered wallets around the clock within the same network, subject to compliance requirements. Moving assets between networks, or between...