Key Facts

• The DTCC processed live trades involving tokenized stocks, ETFs, and U.S. Treasurys in its largest production tokenization initiative to date, demonstrating how tokenized securities can support collateral, repo, and equity transactions while preserving the same legal ownership rights as traditional assets.
• Over two dozen major financial institutions, including JPMorgan Chase, Goldman Sachs, BlackRock, and Vanguard, participated in the initiative, which involved tokenized equities, exchange-traded funds (ETFs), and U.S. Treasurys across a range of transactions.
• The DTCC's system converts existing securities into blockchain-based "digital twins" that retain the same legal ownership, dividend, and governance rights as the underlying assets, distinguishing it from other tokenized stock offerings that may not provide investors with the same rights.
• During the pilot, participants demonstrated several use cases, including JPMorgan converting holdings of the Invesco QQQ Trust ETF into tokenized assets and using tokenized collateral to satisfy central counterparty margin requirements with CME Group.
• The DTCC safeguards more than $114 trillion in securities, making it one of the most important pieces of financial market infrastructure, and plans to launch its tokenization service more broadly in October, when eligible participants will be able to begin converting certain securities into blockchain-based representations for production use.