The Canton Network appears to be in the lead in institutional RWA tokenization, and today, The Depository Trust & Clearing Corporation (DTCC) and Digital Asset announced a partnership to tokenize US Treasury Securities. The Canton Network was created by Digital Asset and managed by a foundation.
According to a company statement, Treasuries handled by DTCC will be custodied on the Canton Network. The partnership announcement follows DTC’s recent receipt of a No-Action Letter from the Securities and Exchange Commission (SEC) to implement and operate a service to tokenize real-world, DTC-custodied assets.
DTCC/Digital Asset is not planning to stop here, and currently, an MVP environment designed to increase the size and scope of the service is planned for early next year.
Frank La Salla, CEO of DTCC, called the collaboration a strategic step forward to build digital infrastructure to bridge TradFi to the new digital paradigm.
“This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with U.S. Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets across network providers.”
The project’s exact roadmap is expected to evolve over several years.
Our goal is to enable the industry and DTC Participants to take advantage of tokenization capabilities that enhance liquidity, operational efficiency and market transparency. We welcome the opportunity to partner with Digital Asset and the Canton Network to bring this first, production environment activity live,” stated Brian Steele, Managing Director, President, Clearing & Securities Services at DTCC.
DTCC is a vital component in the global securities industry. In 2024, DTCC’s subsidiaries processed securities transactions valued at U.S. $3.7 quadrillion, and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $99 trillion. Yet DTCC must update and innovate to remain relevant. As everyone knows, digital securities are the future; DTCC must make aggressive, strategic moves that support tokenization. It may also create additional opportunities to add services if someone else does not do it better.