Morgan Stanley has tokenized U.S. stocks and bonds using DTCC's new service, enhancing liquidity and capital efficiency in the financial markets.
Morgan Stanley has successfully tokenized U.S. equities and Treasury bonds through the Depository Trust & Clearing Corporation (DTCC), becoming one of the first banks to utilize this innovative service.
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
The DTCC Tokenization Service (DTS) enables the creation of digital representations of securities held in the Depository Trust Company (DTC). These tokens maintain the ownership rights, economic benefits, and investor protections associated with the underlying assets. Participants can convert securities from traditional to digital formats and vice versa, facilitating transfers between registered wallets.
Amy Oldenburg, head of digital asset strategy at Morgan Stanley, emphasized that integrating tokenized securities with existing market infrastructure will enhance the bank's capabilities in digital assets as the market evolves.
Details regarding the volume of transactions and the specific securities involved have not been disclosed.
Advancements in Tokenization Infrastructure
DTS operates on the Canton Network blockchain and a private Besu network owned by DTCC, with plans to integrate additional networks by 2027. Tokenized assets can be transferred around the clock between registered wallets within the same blockchain, with expectations that the service will expedite collateral transfers, enhance liquidity, and improve capital efficiency.
Twenty financial organizations, including JPMorgan, Citi, Bank of America, Fidelity Investments, State Street, and UBS, signed agreements to access the platform at its launch. The DTS is built on the DTC's depository infrastructure, which holds securities valued at over $114 trillion.
Initially, the service covers selected stocks from the Russell 1000 index, exchange-traded funds tracking major indices, and U.S. government debt. Morgan Stanley is also preparing to support tokenized stocks within its alternative trading system (ATS), with Oldenburg suggesting that the first quarter of 2027 is a more realistic target for its launch. The bank had originally aimed for the second half of 2026, but Oldenburg cited a lack of ready products and customer demand as reasons for the delay.
On October 28, the DTCC launched its securities tokenization service, designed to bridge traditional financial infrastructure with blockchain technology.
