The Depository Trust & Clearing Corporation, an industry-owned provider of clearing and settlement infrastructure, has chosen the privacy-focused Canton Network as a strategic partner to support its tokenization efforts. The decision marks a significant step in DTCC’s broader plan to modernize market infrastructure by introducing blockchain-based representations of traditional financial assets. According to the announcement, the collaboration will allow a selected portion of U.S. Treasury securities that are currently custodied at the Depository Trust Company to be issued in tokenized form on the Canton Network.
This move follows DTCC’s recent receipt of a No-Action Letter from the US Securities and Exchange Commission. The regulatory clearance allows DTCC to implement and operate a new service dedicated to the tokenization of real-world assets held within DTC. With this regulatory assurance in place, DTCC and its partners are positioning the initiative as a compliant pathway for integrating distributed ledger technology into core financial market operations.
MVP Planned for 2026 With Scope for Expansion
The organizations involved have indicated that development efforts are now focused on delivering a minimum viable product in a controlled production environment. This initial phase is expected to take place during the first half of 2026. The MVP will serve as a testing ground to validate the operational, technical, and regulatory aspects of tokenizing U.S. Treasury securities within an institutional-grade setting.
Following this initial rollout, the project is expected to scale in both size and functionality. Any expansion beyond the MVP phase will depend largely on market demand and feedback from participating clients. This phased approach reflects a cautious but deliberate strategy, aimed at ensuring stability, security, and usability before broader adoption.
Bridging Traditional and Digital Financial Systems
DTCC’s leadership has characterized the partnership as a strategic advancement in building digital market infrastructure that connects established financial systems with emerging blockchain technologies. The collaboration with Digital Asset and the Canton Network is intended to create a seamless link between traditional securities processing and token-based systems, while maintaining the levels of resilience, scalability, and risk management expected in global financial markets.
The Canton Network itself was developed to support the issuance, trading, and management of tokenized real-world assets, including bonds, loans, and investment funds. Its architecture allows multiple institutions to operate on a shared ledger while preserving transaction privacy and meeting jurisdictional and legal requirements. This design is particularly relevant for regulated entities that require confidentiality alongside interoperability.
Institutional Backing Strengthens Canton Ecosystem
Digital Asset, the technology firm responsible for developing the Canton Network, is supported by a consortium of major financial institutions and market participants. Its backers include prominent asset managers, exchanges, data providers, and investment banks, underscoring the strong institutional interest behind the network. This level of support signals confidence in Canton’s potential to serve as a foundational layer for tokenized financial markets.
Minting and using U.S. Treasuries on Canton is coming in 2026, enabling tokenized USTs to be exchanged in near-real-time with stablecoins and other digital assets – all with the privacy and controls regulated markets demand.
A major unlock for global collateral mobility to… pic.twitter.com/XnvdprRq7X
— Canton Network (@CantonNetwork) December 17, 2025
From Digital Asset’s perspective, DTCC’s involvement is expected to accelerate industry adoption of decentralized financial infrastructure. Company leadership has indicated that DTCC’s participation could help unlock new liquidity channels, enable innovative financial products, and drive operational efficiencies across the market.
DTCC Takes Governance Role Alongside Euroclear
Beyond the tokenization project itself, DTCC is set to assume a leadership position within the Canton Network’s decentralized governance framework. The firm will join the Canton Foundation as a co-chair alongside Euroclear, another major post-trade infrastructure provider. This role will give DTCC a direct voice in shaping governance decisions, technical standards, and best practices for the network.
By participating in governance, DTCC aims to contribute its expertise in market structure and risk management to the development of decentralized financial infrastructure. The companies involved have indicated that this collaborative governance model is intended to promote consistency, interoperability, and trust across tokenized markets, laying the groundwork for broader industry-wide innovation.
