Key Takeaways:
- Morgan Stanley is one of the first banks adopting DTCC’s new tokenization service.
- The bank is participating in tokenizing the U.S. equity and Treasury securities holdings at DTC.
- According to DTCC, the service creates opportunities for increased asset mobility, liquidity and capital efficiency.
DTCC’s new Tokenization Service, known as DTS, is another step in the venture of real-world asset tokenization by Morgan Stanley. The Wall Street bank indicated it’s one of the first financial institutions to tokenize U.S. equities and Treasuries on the platform.
We are thrilled to announce that Morgan Stanley is among the first banks to tokenize real-world assets following the launch of the @The_DTCC Tokenization Service (DTS), converting U.S. Equity and U.S. Treasuries to tokenized form.
Launched on October 28, DTS creates tokenized representations of DTC-custodied securities to support greater liquidity, collateral mobility and capital efficiency.
— Morgan Stanley (@MorganStanley) November 3, 2026
Morgan Stanley Moves U.S. Securities Onchain
DTCC officially introduced DTS on October 28, which is a new tokenized offering of traditional securities and enters into a regulated market infrastructure.
Eligible DTC participants can issue digital securities on the service that are backed by securities they already hold at the DTC. Those assets are also transferrable from traditional storage to blockchain storage and hold the same ownership rights and economic value.
Twenty DTCs have signed deals to allow users to access the service, including Morgan Stanley. Other companies involved are JPMorgan, Bank of America, Citi, Barclays, Fidelity Investments, State Street and UBS.
Read More: Bank of England Opens Tokenized Collateral Door With 2027 Deadline for UK Clearing
Tokenized Assets Keep Their Traditional Rights
According to DTCC, the tokenized securities are digital replicas of assets held by DTC. This is because investors would not receive a synthesised product. The token is issued as a representation of an entitlement related to the underlying security and aims to maintain investor protections and economic rights.
Eligible assets may be switched from their traditional to tokenized state, providing institutions with the ability to leverage regulated securities in blockchain-based processes.
DTCC Targets Faster Collateral Movement
Key objectives of DTS include making securities more mobile and easier to deploy. According to DTCC, tokenization will enable institutions to tap into new liquidity pools, move collateral across faster, and balance capital utilization. It provides service for handling token transferring between 24/7 registered digital wallets that are compatible with approved digital networks.
DTS initially launched with the Canton Network and DTCC’s private Besu network. DTCC is looking to expand its networks in 2027. The platform features a limited number of highly liquid securities, such as selected Russell 1,000 stocks, large-cap index ETFs and U.S. Treasury bills, notes and bonds.
$114T Custody Giant Expands Into Tokenization
DTCC’s launch is noteworthy for the entire tokenized real-world asset market, due to the size of their infrastructure.
To date, DTC has over $114 trillion in securities assets held, providing a significant pool that may be integrated into tokenized workflows over time.
DTCC previously conducted a test in July, and about 40 companies took part in live production trades of tokenized U.S. Treasuries and stocks. The transactions encompassed transactions that took place under the Treasury Repo regime as well as buy-sell trades and equity delivery-versus-payment transactions.
By joining, Morgan Stanley brings the technology from the testing phase into the active usage of the technology by institutions via a live tokenization platform.
Read More: Blockchain.com and NYSE Target 24/7 Tokenized Stocks for 44 Million Crypto Accounts
