Morgan Stanley Deploys DTCC Tokenization Service
Key Summary
Morgan Stanley has integrated US equities and Treasuries into the newly launched DTCC Tokenization Service, which went live on October 28 under regulatory guidance from the SEC. The infrastructure currently mirrors custody assets one-to-one on the Canton Network and a private Besu network, with major banking participants onboarding 34 initial securities.
Key Bullets
- Morgan Stanley integrated tokenized US equities and Treasuries through the DTCC Tokenization Service that officially launched on October 28.
- The operational framework relies on an SEC no-action letter issued in December 2025 restricting collateral to Russell 1000 equities and Treasuries.
- Production trades utilize two distributed ledgers consisting of the Canton Network and a private Besu network operated by DTCC.
- Alternative trading system support for tokenized instruments shifted from 2026 into the first quarter of 2027 due to evolving client demand.
Morgan Stanley Adopts DTCC Token Infrastructure
Morgan Stanley confirmed Tuesday that the financial institution has successfully tokenized domestic equities and Treasuries utilizing the newly live DTCC Tokenization Service. Amy Oldenburg, Head of Digital Assets Strategy at Morgan Stanley, stated that handling these instruments inside operational market architecture directly informs the bank's internal digital asset roadmap.
The live rollout follows an extensive pilot phase that included production test trades executed on July 15 alongside more than 30 participating financial institutions. Twenty primary DTC clients have already executed formal onboarding agreements for the service. The infrastructure operates under regulatory clearance granted by SEC staff via a December 2025 no-action letter.
That regulatory clearance strictly confines initial deployment parameters to US Treasuries, select exchange-traded funds, and Russell 1,000 equities. Assets are mirrored one-to-one with physical custody holdings inside the Depository Trust Company. Tokens currently reside across two distinct ledger environments consisting of the Canton Network and a private Besu network.
Multichain Expansion Slated For 2027
Infrastructure development roadmaps point to further network expansions before the end of the decade. DTCC intends to integrate the Stellar network in 2027. Circle's Arc infrastructure is scheduled for integration during the same calendar window.
Internal deployment targets have faced rescheduling. Oldenburg previously pointed to alternative trading system support for tokenized products in the second half of 2026. That operational milestone shifted to the first quarter of 2027.
Slower institutional deployment speeds stem from current client demand metrics. Market participants await broader liquidity pools before committing balance sheet capital. Long-term asset projections from the bank estimate real-world tokenized asset valuations hitting $3.00T to $10.00T by 2030.
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