The bridge between traditional finance and blockchain just got stronger. The Depository Trust & Clearing Corporation (DTCC) has received approval from the U.S. Securities and Exchange Commission to pilot blockchain-based representations of U.S. Treasury securities through one of its subsidiaries.
The initiative follows a recent SEC no-action letter and launches in partnership with Digital Asset and the Canton Network.
Under the pilot, DTC participants will convert Treasury entitlements into tokens on a permissioned blockchain. The actual securities remain on DTCC’s centralized ledger. The tokens simply represent ownership rights, not standalone financial instruments. This approach preserves the existing market structure while introducing blockchain efficiency.
The initial trial is scheduled for the first half of 2026, using DTCC’s ComposerX platform alongside Canton Network’s compliance-focused infrastructure. Any expansion beyond the pilot will depend on regulatory clarity and client demand once the testing phase concludes.
This move comes as tokenized Treasury products gain momentum across financial markets. Outstanding value has surged to nearly $9 billion, up from $2.5 billion just one year ago. Investors are clearly seeking dollar-denominated yield that settles faster using blockchain rails.
Brian Steele, President of Clearing and Securities Services at DTCC, said the pilot allows market participants to explore tokenization without sacrificing legal certainty or market safeguards. The framework is designed to enhance existing infrastructure, not replace it.
The Canton Network plays a critical role by enabling restricted transfers between approved participants. Only authorized entities can access the tokenized Treasury representations during the pilot, reinforcing institutional-grade controls and compliance.
The SEC’s no-action letter gives DTCC permission to tokenize specific security entitlements within narrowly defined limits. This approval marks the first live test of on-chain assets directly tied to DTC custody under U.S. regulatory oversight.
As real-world asset tokenization accelerates, Treasury securities stand out due to their liquidity and credit quality. For institutions, this pilot is less about hype and more about proving that blockchain can work inside the world’s most trusted financial systems.
