Integrating blockchain technology into existing financial systems could embed tokenized assets directly within mainstream market infrastructure, rather than operating them as a separate parallel market.
Tokenization aims to simplify the transfer, settlement, and use of financial assets as collateral. While banks and asset managers have spent years experimenting with blockchain-based securities, connecting those assets to the systems that underpin trillions of dollars in daily transactions could bring the technology into routine market operations.
Citi analysts project that tokenized securities will become a $5.5 trillion market by 2030 as more financial institutions adopt blockchain technology.
Integrating Traditional Securities On-Chain
“Today marks the culmination of years of work to bring tokenized securities into a regulated framework supported by trusted market infrastructure,” said Frank La Salla, DTCC’s president and CEO.
“By extending DTC’s resiliency, governance, and operational standards into digital markets, we are establishing the foundation for responsible institutional adoption at scale.”
Twenty participants have signed agreements to access the service, including Bank of America, Barclays, Citi, Fidelity Investments, JPMorgan, Morgan Stanley, Citadel Securities, State Street, and UBS. DTCC said more firms will join over time.
Eligible firms can convert securities into tokens during business hours, with DTCC targeting processing times of 15 minutes or less. Once tokenized, the assets can move between registered blockchain wallets around the clock, subject to compliance restrictions.
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