DTCC and Digital Asset to Tokenize U.S. Treasury Securities on Canton Network

Core Insights - The Depository Trust & Clearing Corporation (DTCC) has partnered with Digital Asset Holdings and the Canton Network to enable the tokenization of DTC-custodied U.S. Treasury securities [1] - This partnership marks DTCC's first step towards making DTC-custodied assets available on-chain, aligning with the trend of traditional financial institutions exploring blockchain applications [1][3] Regulatory Support - The U.S. Securities and Exchange Commission (SEC) has provided regulatory backing by issuing a No-Action Letter, allowing DTCC to implement a new service for tokenizing real-world assets held at The Depository Trust Company (DTC) [2][3] - Regulatory clarity is seen as foundational for DTCC's on-chain strategy, enabling experimentation with blockchain workflows while adhering to market safeguards and compliance standards [4] Project Timeline and Goals - DTCC plans to mint a subset of U.S. Treasury securities on the Canton Network, with a minimum viable product targeted for the first half of 2026 [5] - The project is expected to expand in scale and scope based on client demand in subsequent phases [5] Technological Infrastructure - To support the tokenization initiative, DTCC will utilize its ComposerX suite of platforms, designed for tokenization and interoperability across market infrastructures [6] Strategic Vision - DTCC CEO Frank LaSalla emphasizes the collaboration as a step towards creating digital infrastructure that connects traditional and digital financial ecosystems, starting with U.S. Treasury securities [7] - Digital Asset Co-Founder and CEO Yuval Rooz highlights the partnership's potential to unlock new liquidity opportunities, products, and operational efficiencies across capital markets [8]