Hardware Ready Ready to Bench?
On November 3, Morgan Stanley announced it would use the DTCC Tokenization Service (DTS) to convert US equities and Treasury securities into digital form. The institution positions itself among the first major players in traditional finance to adopt this technology, following the official launch of the service by the Depository Trust & Clearing Corporation on October 28.
Why it matters
The initiative marks a concrete step in integrating traditional assets with blockchain infrastructure. The issued tokens are defined as “digital twins” and retain the CUSIP code of the underlying security, ensuring one-to-one coverage against assets held in custody at DTC. This approach allows for preserving established market infrastructure while introducing digital liquidity. Amy Oldenburg, head of digital asset strategy at Morgan Stanley, stated that practical experience in integrating these securities will inform the bank’s ongoing development of capabilities in the digital asset sector.
The numbers
At the DTS launch on October 28, approximately 20 participants in the Depository Trust Company (DTC) had signed agreements to use the service. These include major Wall Street names such as Bank of America, Citi, and J.P. Morgan, as well as Ondo. The service currently operates on two networks: the Canton Network and a private Besu network managed by DTCC. A SEC no-action letter from December 2025 already covers Russell 1000 stocks, ETFs tracking major indices, and US Treasury securities.
What remains to be seen
The announcement does not specify which securities were actually tokenized nor indicate the quantities or volumes of transactions. It is also unclear whether the tokens are held on behalf of the bank’s clients or for Morgan Stanley itself. The exact blockchain used for Morgan Stanley’s specific operation has not been made public, although it is known that the service supports Canton and Besu.
Sources: CoinDesk, Decrypt, Unchained.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.