DTCC Selects Canton Network for Tokenization of DTC-Custodied U.S. Treasury Securities
- DTCC has joined the Canton Foundation to build an MVP for tokenized securities in the first half of 2026.
- Canton Network is designed for regulated institutional use, offering privacy-focused tokenization of assets such as bonds, loans, and funds.
The Depository Trust & Clearing Corporation (DTCC) has declared privacy-focused Canton Network as its tokenization partner. As part of this partnership, some US Treasury securities that are custodied with the DTC, could be minted on the Canton blockchain network. The development comes following the no-action letter from the U.S. Securities and Exchange Commission (SEC) that allows the implementation and operation of services for tokenizing real-world assets (RWA).
DTCC Joins Canton Foundation Leadership Amid Institutional Demand
The Depository Trust & Clearing Corporation (DTCC) has joined the Canton Foundation as a co-chair alongside Euroclear. This marks a major step in the institutional adoption of blockchain technology.
As a result, two of the world’s largest infrastructure providers have come together and will jointly oversee the development of Canton Network, which is a permissioned blockchain for regulated financial markets. For the first half of 2026, both organizations will work on an MVP, in a controlled environment. After this success, they will further expand the project’s scope and size in the coming months, as per the client’s demand.
Yuval Rooz, chief executive of Digital Asset, the firm behind Canton, said DTCC’s involvement would “accelerate industry adoption.” He also said that this move will help to set the groundwork for new liquidity products and operational efficiencies. The endorsement is notable given DTCC’s central role in global markets, where it processes more than $2 quadrillion in securities transactions annually.
The good thing about the Canton blockchain is that it puts a greater focus on privacy, a key requirement for institutional players. The Canton Network works with a permission-based model, that is different from other public blockchains that expose transaction data broadly. Thus, participants can control data visibility to meet confidentiality, competitive, and regulatory needs.
The network has already completed multiple pilot programs with DTCC. In the most recent trial, 26 organizations executed more than 100 transactions involving tokenized U.S. Treasury bonds.
The tests covered the creation of digital representations of real-world assets, their use as collateral for margin calls, asset recalls, and closeout scenarios. Speaking on the development, Frank LaSalla, CEO of DTCC said:
Canton Network Targets Institutional Tokenization
The Canton Network has been developed to allow financial institutions to issue and trade tokenized real-world assets. It includes loans, bonds, and funds on a shared ledger while complying with regulatory requirements and without compromising on privacy.
The network is built by Digital Asset, a blockchain firm backed by major Wall Street players such as BlackRock, Blackstone, Nasdaq, S&P Global, Goldman Sachs, and Citadel Securities.
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