A Landmark Step in Institutional Tokenization
On December 17, 2025, the Depository Trust & Clearing Corporation (DTCC)—the world’s largest securities settlement system—announced a multi-year partnership with Digital Asset (creators of the Canton Network) to tokenize a subset of U.S. Treasury securities custodied at its subsidiary, the Depository Trust Company (DTC). This initiative marks DTCC’s first major move to bring real-world, high-value assets on-chain in a regulated, institutional-grade environment, leveraging the privacy-focused, permissionless Canton Network.
The collaboration follows DTCC’s receipt of a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), granting clearance to operate a tokenization service for DTC-eligible assets without enforcement action for three years. DTCC will also join the Canton Foundation as co-chair alongside Euroclear, underscoring its leadership in bridging traditional finance with blockchain.
DTCC CEO Frank La Salla stated:
“This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with U.S. Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets.”
Digital Asset CEO Yuval Rooz added:
“DTCC’s leadership accelerates industry adoption, unlocking new liquidity opportunities, products, and operational improvements.”
Key Details of the Partnership
- Initial Focus: Tokenization of U.S. Treasury securities (bills, bonds, notes) custodied at DTC.
- Launch Timeline: Minting and on-chain use expected in 2026, enabling near-real-time exchanges with stablecoins and other digital assets.
- Technology: Canton Network’s privacy controls, atomic settlement, and interoperability ensure compliance while maintaining institutional safeguards.
- Expansion Plans: Multi-year roadmap to include ETFs (major indexes, Russell 1000) and other DTC-eligible assets.
- Regulatory Backing: SEC No-Action Letter applies to highly liquid assets, providing a compliant pathway.
| Aspect | Details |
|---|---|
| Assets Involved | U.S. Treasury securities (initial); ETFs and others (future) |
| Network | Canton Network (privacy-focused, permissionless Layer-1) |
| Benefits | Instant liquidity, 24/7 settlement, reduced counterparty risk |
| Governance Role | DTCC co-chairs Canton Foundation with Euroclear |
| Timeline | MVP testing 2026; full scaling over multiple years |
Why Canton Network? Privacy and Institutional Fit
Canton, backed by Wall Street heavyweights (Goldman Sachs, BlackRock, Citadel Securities), was selected for its configurable privacy—allowing institutions to transact on a public ledger while protecting sensitive data. This addresses a core RWA challenge: Balancing transparency with compliance in a $35 billion tokenized asset market (non-stablecoin RWAs, up 251% YoY for Treasuries).
Previous pilots (e.g., 2024 UST Collateral Network with 26 participants) proved Canton’s viability for collateral mobility, margin calls, and atomic settlements.
Market Implications: Unlocking Global Collateral Mobility
This partnership could catalyze the RWA sector:
- Liquidity Boost: Tokenized Treasuries enable near-instant swaps with stablecoins, freeing trillions in idle capital.
- Broader Adoption: Sets precedent for tokenized funds, equities, and repos—projected $2-18 trillion market by 2030.
- Crypto Tie-In: Enhances on-chain yield access, complementing stablecoin growth ($19.4B YTD volumes).
In a $3.57 trillion crypto ecosystem, DTCC’s Canton move isn’t experimental—it’s infrastructure for the tokenized era. Treasuries on-chain in 2026: A major unlock ahead. DYOR.