Morgan Stanley Tokenization of Equities and Treasuries Begins Through DTCC Service

Morgan Stanley announced on November 3, 2026, that it has begun tokenizing select US equities and Treasuries through the DTCC Tokenization Service. The move places the bank among the first institutions to test the platform six days after its launch on October 28.

The service generates one-to-one digital tokens that mirror securities already held in Depository Trust Company custody. These tokens retain original CUSIP identifiers, ownership records, and economic rights while enabling transfers on supported blockchains.

Morgan Stanley Tokenization Details and Platform Mechanics

The DTCC Tokenization Service runs initially on the Canton Network and DTCC’s private Besu blockchain. Participants can convert eligible securities into tokens for 24/7 movement between registered wallets on the same ledger. At launch, 34 securities with roughly $30 trillion in market value became eligible, including selected Russell 1000 stocks, major equity ETFs, and US Treasury bills, notes, and bonds.

Twenty DTC participants signed access agreements before the October 28 go-live. The group includes Morgan Stanley, JPMorgan, Citi, Bank of America, Barclays, BNP Paribas, Fidelity Investments, State Street, UBS, and Citadel Securities. Additional firms will join on a rolling schedule. The service preserves all existing investor protections and settlement finality while adding bidirectional conversion between traditional and tokenized forms.

Morgan Stanley’s head of digital assets strategy, Amy Oldenburg, noted that early integration work will guide further development of the firm’s digital asset capabilities. Separately, the bank shifted its target for supporting tokenized equities on its Trajectory Cross alternative trading system to the first quarter of 2027.

Development Background and Participant Onboarding

DTCC developed the Tokenization Service with input from more than 150 firms. Limited production activity began in July 2026, covering equity and Treasury delivery-versus-payment trades, collateral pledges, and securities lending across more than 30 participants. The platform aims to improve liquidity, collateral mobility, and capital efficiency inside existing regulatory frameworks.

The Depository Trust Company holds more than $114 trillion in assets under custody. By creating tokenized versions only of securities already in its books, the service avoids new custody risks while allowing institutions to test blockchain settlement without leaving the regulated environment. Planned network expansions include Stellar and Circle’s Arc in 2027.

Next Steps for Broader Institutional Use

Broader participant onboarding continues, along with preparations for additional blockchain networks next year. Morgan Stanley’s planned support for tokenized equities on its alternative trading system will provide another controlled environment for testing. Expanded use cases under consideration include on-chain netting, digital cash settlement, and collateral management.

The service operates under a December 2025 SEC no-action letter that defined initial asset eligibility. Future growth depends on regulatory clarity and participant demand for 24/7 settlement within the existing US securities infrastructure.