The Depository Trust & Clearing Corporation (DTCC), the central plumbing of U.S. capital markets, has signaled a sweeping ambition: to make every one of the roughly 1.4 million securities in its custody system available in digital tokenized form. This goal goes far beyond previous tokenization pilots and directly connects traditional securities to blockchain rails.
From Legacy to On-Chain in 15 Minutes
Brian Steele, DTCC President of Clearing and Securities Services, said during a recent discussion: “Our goal is to eventually enable investors to access the entirety of the market of DTC-eligible securities — roughly about 1.4 million CUSIPs — to become digitally eligible and have been onboarded through direct registration.” The rollout is opt-in, with no forced migration. Participants can convert securities into tokenized formats and back in as little as 15 minutes. Equities, mutual funds, fixed income and other instruments could all move on-chain, while preserving existing ownership rights, legal protections and bankruptcy treatment.
Nadine Chakar, DTCC Global Head of Digital Assets, stressed flexibility: “We are not dictating which wallet or blockchain clients should use. Everything we’re doing is to meet them where they are.” The underlying platform was built after DTCC’s 2023 acquisition of Securrency; it allows clients to tap into DeFi strategies or 24/7 settlement rails while maintaining a link to traditional market liquidity.
First Play: Collateral Optimization
DTCC is starting with a high-impact use case — collateral optimization. By enabling atomic settlement and 24/7 movement of collateral, the firm aims to help institutions unlock new financing strategies and shift capital across regions and time zones. “Collateral is the first port of call,” Steele said. “It’s where we see real, measurable impact today.” Tokenized cash — via stablecoins or deposits — will also be supported within the system.
No Bridges, Burn-and-Reissue Only
When it comes to moving tokens between chains, DTCC has taken a hard stance against blockchain bridges, citing security concerns. Instead, tokens will be burned and reissued under DTCC’s orchestration layer. This approach contrasts sharply with common DeFi cross-chain bridge designs, reflecting DTCC’s institutional caution.
If realized, DTCC’s full tokenization roadmap would bring over a million traditional securities into the crypto orbit — a scale no single project or institution has attempted. However, the opt-in nature and DTCC’s central control mean the real pace of adoption remains to be seen.