Morgan Stanley says it is among the first banks to use the Depository Trust & Clearing Corporation's new tokenization service. The service turns US stocks and Treasuries into blockchain-based versions, and twenty firms have signed up so far.
Morgan Stanley says it is among the first banks to use a new Wall Street system that turns US stocks and Treasuries into digital versions trading on a blockchain. The bank said in a post on X that it began tokenizing after the Depository Trust & Clearing Corporation (DTCC) launched its Tokenization Service, or DTS.
DTCC clears and settles most US stock and bond trades. The service went live Oct. 28.
How DTCC's tokens work
Under DTS, DTCC's Depository Trust Company mints tokens that represent securities it already holds. DTCC says the tokens keep the same ownership rights and investor protections as the originals. Users can swap between the two forms and send tokens to their own digital wallets.
Tokenization means creating a digital version of a security that can trade on the blockchain 24/7. DTCC says it can improve liquidity, make collateral easier to move and use capital more efficiently.
Two blockchains, twenty firms
The service runs on two blockchains, Canton and DTCC's private Besu network, with more planned for 2027. It covers Russell 1000 stocks, exchange-traded funds that track major indexes and Treasuries. The Securities and Exchange Commission cleared the project in a December 2025 no-action letter.
Twenty firms have signed up so far, including Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.
Amy Oldenburg, Morgan Stanley's head of digital assets strategy, said the experience will shape what the bank builds next. CoinDesk reached out to Morgan Stanley for comment and did not receive a response at the time of writing.
Source: CoinDesk
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