DTCC to Tokenize U.S. Treasuries on Canton Network

The Depository Trust & Clearing Corporation, which processed a staggering $3.7 quadrillion in transactions last year, unveiled its plan to issue tokenized securities, starting with U.S. Treasuries, on the Canton Network. According to the announcement, this represents the “first step in a years-long roadmap” for DTCC, underscoring a deliberate, phased approach to integrating blockchain technology. The securities themselves will continue to be held in safekeeping by DTCC, a critical detail that demonstrates an effort to harness blockchain for operational efficiency while fully accommodating existing regulatory frameworks and custody norms.

DTCC CEO Frank La Salla framed the endeavor as creating a framework to bring “high-value tokenization use cases to market,” with plans to eventually expand to other networks and asset classes. The initiative received a significant regulatory green light last week when the U.S. Securities and Exchange Commission approved a three-year pilot program, allowing DTCC to issue tokens on either public or private blockchains. While Canton was named as the initial network, DTCC is expected to provide a list of other approved networks at a later date, indicating a flexible, multi-chain strategy.

The chosen platform for this landmark initiative is the Canton Network, a blockchain explicitly built for financial institutions with “configurable privacy and institutional-grade compliance.” Unlike most public blockchains where transaction details are visible to all, Canton employs sub-transaction privacy. This means participants can only see the aspects of a transaction that directly apply to them, operating on a strict need-to-know basis. This feature is paramount for institutions handling sensitive financial data and competing trading strategies.

Canton’s ecosystem is already substantial, boasting over 600 participating institutions and $6 trillion in assets, according to its creator, Digital Asset. The network’s native cryptocurrency, CC, saw a modest 2.6% rise to $0.075 following the announcement, though its price has fallen 56% since its debut last month. The platform’s institutional credibility has been bolstered by recent strategic investments. Earlier this month, Digital Asset disclosed funding from BNY Mellon—one of the U.S.’s oldest banks—alongside fintech firm iCapital, Nasdaq, and S&P Global. This follows a reported $135 million funding round earlier this year that included Goldman Sachs.

Beyond the technical implementation, DTCC’s move signifies a deeper structural shift within traditional finance. The company will assume a leadership position within Canton’s decentralized governance structure, specifically co-chairing the Canton Foundation alongside Euroclear, the Belgium-based financial infrastructure provider that services overseas markets. This partnership positions DTCC and Euroclear at the helm of setting standards and guiding the development of institutional blockchain applications.

The reaction from industry leaders underscores the announcement’s perceived significance. Don Wilson, CEO of trading firm DRW, described the news on X as a harbinger of Wall Street’s incremental embrace of digital assets, reflecting “a fundamental shift in how markets will operate going forward.” He added, “The transformation is accelerating, and this is just the start.” This sentiment captures the broader narrative: DTCC’s entry is not a speculative foray but a foundational step by a central market utility, lending immense credibility to the tokenization of real-world assets like U.S. Treasuries and paving the way for wider adoption across the financial ecosystem.