Morgan Stanley among first banks to tokenize US equities, Treasurys through DTCC's service
Morgan Stanley has begun using the Depository Trust & Clearing Corporation's new tokenization infrastructure to tokenize real-world assets, joining a group of financial institutions that accessed the service after its launch last week.
The bank said it has tokenized U.S. equities and Treasurys through the service, making it among the first to do so, according to an X post.
"The hands-on experience of integrating tokenized securities with established market infrastructure will inform the continued development of the firm's digital asset capabilities as the market evolves," said Amy Oldenburg, Morgan Stanley's head of digital assets strategy.
DTC, DTCC's depository subsidiary, which holds $114 trillion in assets under custody, signed 20 participants to access the service at launch, including Bank of America, Barclays, and BNP Paribas. Citi, Fidelity Investments, JPMorgan, State Street, and UBS were also listed, with plans to onboard future users on a rolling basis put in place.
DTCC said at the time the service was developed with input from more than 150 firms and initially supported Canton and its private Besu network.
The development comes as Morgan Stanley expects to support tokenized equities on its alternative trading system in the first quarter of 2027, later than its previous H2 2026 target. Oldenburg told The Block last month that the bank was building the necessary infrastructure for the initiative.
Meanwhile, Morgan Stanley is not alone in the tokenization race. The New York Stock Exchange and its parent, Intercontinental Exchange, are also advancing plans for a tokenized trading platform. Broadridge, Computershare, Equiniti, and Superstate have signed agreements to serve as transfer agents.
