TL;DR
- Regulatory milestone: DTCC secured SEC clearance to tokenize U.S. Treasury securities on Canton Network.
- Privacy focus: Canton’s permissioned blockchain ensures confidential transactions while reducing operational risk.
- Liquidity gains: Tokenization promises faster settlements, improved efficiency, and new opportunities for institutional investors.
The Depository Trust & Clearing Corporation (DTCC) has announced a landmark collaboration with Canton Network to tokenize U.S. Treasury securities, marking a pivotal step in bridging traditional finance with blockchain technology. The initiative, backed by regulatory clearance from the U.S. SEC, positions the Depository at the forefront of digital asset infrastructure while addressing institutional concerns around privacy, efficiency, and liquidity.
DTCC teams up with Digital Asset Holdings and Canton Network to tokenize DTC-custodied securities on-chain. This marks the first step toward real-world assets on DLT—driving efficiency and market transparency.
Read the press release: https://t.co/ca2yaUXZ2I pic.twitter.com/GWXS4iP5Pi
— DTCC (@The_DTCC) December 17, 2025
SEC Clearance Enables Tokenization
DTCC’s partnership follows its receipt of a No‑Action Letter from the SEC, granting approval to tokenize real‑world assets custodied by the Depository Trust Company (DTC). This regulatory milestone allows DTCC to mint a subset of U.S. Treasury securities directly onto the Canton Network. The pilot program is scheduled to launch in the first half of 2026, with expansion contingent on market demand. By securing regulatory backing, DTCC ensures compliance while pioneering blockchain adoption in institutional finance.
Privacy and Security at the Core
Canton Network’s permissioned structure is central to the project, ensuring that transactions remain confidential while maintaining operational transparency. This privacy‑focused design addresses critical concerns for institutional investors wary of exposing sensitive financial data. The depository emphasized that the collaboration not only enhances security but also reduces operational risk, creating a safer environment for tokenized asset trading. Confidentiality and efficiency are positioned as dual pillars of the initiative.
Efficiency and Liquidity Gains
The tokenization of U.S. Treasuries is expected to deliver significant benefits in liquidity and capital efficiency. By streamlining settlement processes, the project aims to reduce operational bottlenecks and shorten transaction times. DTCC’s CEO Frank La Salla highlighted that blockchain integration creates a roadmap for future digital infrastructure, bridging traditional and decentralized ecosystems. Enhanced liquidity opportunities could attract institutional investors seeking faster, more transparent markets.
Governance and Industry Standards
Beyond technical innovation, DTCC will assume a leadership role within the Canton Foundation, co‑chairing its decentralized governance structure. This position enables DTCC to influence emerging industry standards for tokenized financial infrastructure. If successful, the project could accelerate adoption across global markets, setting benchmarks for efficiency, transparency, and governance in decentralized finance. The partnership underscores DTCC’s ambition to shape the next era of financial infrastructure.
