--- title: "Morgan Stanley Begins Tokenizing Stocks and Treasuries via DTCC Infrastructure" description: "The investment bank joins a roster of 20 institutional participants issuing digital twins of DTC-custodied securities on Canton and Besu." url: https://basisdesk.news/news/morgan-stanley-tokenizes-equities-treasuries-dtcc-service published: 2026-11-04T16:36:33.728Z modified: 2026-11-04T16:36:33.728Z section: RWA & Tokenization author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [] tags: [tokenization, dtcc, morgan-stanley, treasuries, equities, institutional-custody] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Morgan Stanley Begins Tokenizing Stocks and Treasuries via DTCC Infrastructure The investment bank joins a roster of 20 institutional participants issuing digital twins of DTC-custodied securities on Canton and Besu. ## At a glance - **What happened:** Morgan Stanley began tokenizing U.S. equities and Treasuries through the DTCC Tokenization Service, which launched on Oct. 28. - **Why it matters:** Institutional participants can transfer collateral and tap liquidity within minutes while maintaining standard DTC custody rights. - **Who is affected:** DTC participant banks and broker-dealers, including Morgan Stanley, Citi, J.P. Morgan, and Bank of America. - **Takes effect:** Oct. 28 - **What's next:** DTCC plans to expand the service to additional blockchain networks in 2027. - **Status:** in-effect - **Primary source:** [Wall Street’s Plumbing Goes Onchain as Morgan Stanley Tokenizes Securities](https://decrypt.co/382513/wall-streets-plumbing-onchain-morgan-stanley-tokenizes-securities) — decrypt.co ## Key points - Morgan Stanley began tokenizing U.S. stocks and Treasuries via the DTCC Tokenization Service, which launched on Oct. 28 [1]. - The platform issues digital twins of DTC-custodied assets on the Canton Network and DTCC's private Besu network, with more chains planned for 2027 [1]. - Twenty institutions have signed on, including J.P. Morgan, Citi, Bank of America, Fidelity Investments, and Citadel Securities [1]. ## Editorial remark - **Context:** The rollout follows a December 2025 SEC no-action letter permitting the DTC, which custodies $114 trillion in assets, to tokenize Russell 1000 stocks, ETFs, and U.S. Treasuries. - **Impact:** Custodied assets can now be converted to digital twins for collateral management and liquidity transfers within minutes, giving major banks regulated onchain settlement mechanisms. - **Watch:** DTCC plans to expand network compatibility beyond Canton and Besu to additional blockchains starting in 2027. Morgan Stanley has begun converting traditional U.S. equities and Treasuries into onchain assets using the Depository Trust Co.'s newly launched tokenization platform [1]. The investment bank announced on Tuesday that it is among the initial cohort deploying capital through the DTCC Tokenization Service, which went live on Oct. 28 [1]. The Depository Trust & Clearing Corp. subsidiary acts as the central clearing and settlement backbone for U.S. markets, holding more than $114 trillion in assets under custody [1]. The infrastructure enables participating institutions to convert securities custodied at the DTC into tokenized "digital twins" and redeem them back into standard book-entry form [1]. The DTCC stated that these tokens retain the identical ownership rights, economic benefits, and investor protections of the underlying assets while allowing institutions to transfer collateral and access liquidity pools in minutes [1]. Settlements currently operate across the Canton Network and the DTCC's private Besu blockchain network, with support for additional networks scheduled for 2027 [1]. ## Institutional Adoption vs. Exchange Initiatives Morgan Stanley is one of 20 DTC members participating in the deployment [1]. The initial group includes Bank of America, Citi, J.P. Morgan, Fidelity Investments, Citadel Securities, and UBS, developed following consultations with over 150 industry firms [1]. The program follows regulatory clearance granted in December 2025, when the Securities and Exchange Commission issued a no-action letter authorizing the DTC to tokenize Russell 1000 equities, major index exchange-traded funds, and U.S. Treasuries [1]. Amy Oldenburg, head of digital assets strategy at Morgan Stanley, stated that integrating tokenized assets with established market infrastructure will guide the firm's ongoing digital asset strategy [1]. This custodian-backed rollout contrasts with external exchange efforts to trade synthetic or secondary equity tokens [1]. While competitors have pursued retail-facing venues—such as initiatives seen when [Blockchain.com and NYSE partnered on tokenized securities](https://basisdesk.news/news/blockchain-com-nyse-partner-tokenized-securities-ats)—commercial friction remains [1]. Fifty-six major corporations, including Amazon, Nvidia, Tesla, and SpaceX, filed formal objections against having their equity traded on the proposed OKXICE TSV venue, triggering an SEC innovation exemption rule that blocks unauthorized third-party listings [1]. Additionally, an International Monetary Fund study released last month noted that while tokenized equities see notable activity outside standard U.S. trading hours, they still suffer from higher volatility and thinner liquidity than traditional secondary markets [1]. ## FAQ **What assets can be tokenized under the DTCC Tokenization Service?** Under the SEC's December 2025 no-action letter, the DTCC is authorized to issue tokenized versions of Russell 1000 equities, major index ETFs, and U.S. Treasuries custodied at the DTC. **Which blockchains support the DTCC digital twins?** The service operates on the Canton Network and DTCC's private Besu network, with plans to expand onto additional blockchains in 2027. ## Sources 1. [Wall Street’s Plumbing Goes Onchain as Morgan Stanley Tokenizes Securities](https://decrypt.co/382513/wall-streets-plumbing-onchain-morgan-stanley-tokenizes-securities) — decrypt.co, 2026-11-04 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai