Morgan Stanley among first banks using DTCC tokenization service

Morgan Stanley has become one of the first major banks to tokenize U.S. equities and Treasuries through the Depository Trust & Clearing Corporation's new Tokenization Service, which launched on October 28, 2026. Supported by a December 2025 SEC no-action letter covering Russell 1000 stocks and index ETFs, the system operates on Canton and private Besu networks. Twenty institutions, including Citi and J.P. Morgan, have signed up to improve liquidity and collateral movement.

Morgan Stanley adopts DTCC service

• ▪Morgan Stanley expects to support tokenized equities on its alternative trading system in the first quarter of 2027
• ▪Morgan Stanley announced it began tokenizing U.S. equities and Treasuries using the Depository Trust & Clearing Corporation's Tokenization Service

DTCC launches Tokenization Service

• ▪Twenty firms signed up for the Depository Trust & Clearing Corporation's Tokenization Service at launch, including Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity, and Citadel Securities
• ▪The Depository Trust & Clearing Corporation launched its Tokenization Service on October 28, 2026, to create blockchain-based versions of U.S. stocks and Treasuries
• ▪The Depository Trust & Clearing Corporation developed its Tokenization Service, which launched on Oct. 28, with input from more than 150 financial firms

Technical features and regulatory clearance

• ▪The Depository Trust & Clearing Corporation stated its Tokenization Service can improve liquidity, simplify collateral transfers, and increase capital efficiency
• ▪The Depository Trust Company mints tokens representing held securities on the Canton blockchain and DTCC's private Besu network, with additional blockchains planned for 2027
• ▪The Securities and Exchange Commission issued a no-action letter in December 2025 clearing the Depository Trust & Clearing Corporation's Tokenization Service for Russell 1000 stocks, major index ETFs, and Treasuries