DTCC to mint tokenized US Treasurys on Canton network after SEC no‑action letter
The Depository Trust & Clearing Corporation (DTCC) has received an SEC no‑action letter authorizing a three‑year pilot to offer a securities tokenization service on pre‑approved permissioned blockchains. DTCC will begin by tokenizing a subset of highly liquid U.S. Treasury securities and selected large‑index ETFs custodied at the Depository Trust Company, using the privacy‑focused Canton Network developed by Digital Asset. DTCC will co‑chair Canton governance with Euroclear. The organizations aim to run a minimum viable product (MVP) in a controlled production environment by H1 2026, with phased expansion based on client demand. DTCC — which handled roughly $3.7 quadrillion in securities transactions last year — positions the initiative as a bridge between traditional capital markets and onchain infrastructure, targeting operational efficiencies, new product formation and potential liquidity improvements for regulated real‑world assets (RWAs). Observers note tokenization on a private chain may take time to integrate with public DeFi rails, and regulatory engagement will remain central as the program develops.
Neutral
Direct market impact on crypto asset prices is likely limited. The news advances institutional tokenization of regulated real‑world assets (RWAs) on a permissioned chain — a development that strengthens onchain infrastructure and may increase institutional engagement with tokenized securities over time. Short term: traders should expect limited volatility in major cryptocurrencies because the pilot targets private institutional rails (Canton) rather than public DeFi liquidity, so immediate demand for native crypto (e.g., ETH) is unlikely to surge. Medium/long term: successful rollout could increase onchain settlement volumes, improve interoperability between traditional finance and tokenized markets, and gradually expand demand for infrastructure tokens and custody/settlement services; this is constructive for projects enabling institutional tokenization but still incremental. Key risks that temper bullishness include slow regulatory coordination, limited integration with public DeFi, and phased client adoption, which point to a gradual, not immediate, market effect.