DTCC Tokenization Service Launches on Canton Network

The Depository Trust and Clearing Corporation (DTCC) has launched its tokenization service, which will enable the digital representation of securities on a blockchain. The service will run on two chains at launch: the Canton Network and LFDT Besu, an enterprise variant of Ethereum technology. The Canton Network is built for regulated institutions and offers confidentiality, as business between two parties can be settled without revealing details to other participants.

The service will first tokenize US Treasury securities held in DTC custody. The DTCC uses its ComposerX platform family for this task and plans to expand the scope to a broader range of DTC-eligible assets. The service has already run a stress test with real transactions in July, which included collateralizing loans with securities, securities lending, delivery versus payment in Treasuries and equities, repurchase agreements, dividend payments, and margin calculation in the central counterparty.

The permission for the service is based on a no-action letter from the US Securities and Exchange Commission dated December 11, 2025. The letter is valid for three years after the service goes live. More than 50 institutions are part of the working group, including BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and the NYSE.

Canton Coin, the token used to pay fees inside the Canton network, trades at $0.1266, with a market value of $5.03 billion. The daily turnover is around $8.8 million to $10.5 million, which is a tiny fraction of the market value. Euro trading in the token is also limited, with only two trading pairs denominated in euros, one at Kraken and one at OKX, carrying around $46,000 in daily turnover.