Morgan Stanley said it is among the first major financial institutions to tokenize real-world assets on the Depository Trust & Clearing Corporation's new Tokenization Service. The bank is creating tokenized versions of U.S. equities and Treasury securities. The DTCC says the platform targets structural bottlenecks in legacy trading.
Morgan Stanley announced on Nov. 4 that it is among the first major financial institutions to use the Depository Trust & Clearing Corporation Tokenization Service (DTS). The service gives the bank a way to put traditional assets onto digital rails.
Equities and Treasuries go on-chain
According to the firm, Morgan Stanley has begun using the platform to create tokenized representations of U.S. equities and U.S. Treasury securities. The initiative maps regulated assets onto distributed ledger networks and links legacy settlement systems with programmable infrastructure.
The integration follows the DTS commercial launch on Oct. 28. The platform processes securities held in custody by the Depository Trust Company, and institutions can use it to issue and manage digital representations of those assets.
What the DTCC built the platform to do
DTS initially connects to the Canton Network and to the DTCC's private Besu blockchain. According to the DTCC's statements, the platform aims to address structural bottlenecks in legacy trading by enhancing asset liquidity and boosting collateral mobility.
It also aims to reduce operational overhead and settlement friction, which would let institutions optimize how they deploy capital across trading operations.
Morgan Stanley links the move to its digital asset plans
Amy Oldenburg, head of digital assets strategy at Morgan Stanley, said the hands-on experience of integrating tokenized securities with established market infrastructure will inform the continued development of the firm's digital asset capabilities.
The report describes the adoption as part of a broader migration from exploratory proofs-of-concept to live operational workflows. Industry watchers view DTS as a proving ground for whether blockchain technology can scale within traditional finance.
Source: Bitcoin News
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