FinanceShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailStellar Joins DTCC's Initiative for On-Chain Tokenization of Wall Street Securities
Stellar has been chosen by DTCC as the initial public blockchain for its forthcoming tokenized securities settlement platform, as stated by Denelle Dixon, CEO of the Stellar Development Foundation.
By Krisztian Sandor|Edited by Nikhilesh De May 31, 2026, 5:00 p.m. 3 min readMake preferred on Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation (Stellar)Key Points:
- DTCC has selected Stellar as the first public blockchain to link with its forthcoming tokenized securities settlement system.
- This collaboration builds on nearly a decade-long association with Securrency, now known as DTCC Digital Assets, which collaborated with Stellar to integrate compliance mechanisms into the network.
- Franklin Templeton's launch of the BENJI tokenized U.S. treasury fund in 2021 showcased the operation of regulated assets on public blockchains, according to Dixon.
DTCC's recent announcement to connect its forthcoming tokenized securities platform with the Stellar (XLM) network marks a significant development in a partnership that has been evolving for almost ten years, as noted by Denelle Dixon, CEO of the Stellar Development Foundation.
Earlier this week, DTCC indicated that tokenized assets managed through its Depository Trust Company could be accessible on Stellar starting in the first half of 2027.
This initiative is significant given that DTCC is a foundational entity on Wall Street, managing assets exceeding $114 trillion. The integration with Stellar is intended to facilitate the issuance, settlement, and lifecycle management of tokenized securities, while also paving the way for future projects involving highly liquid assets like major indexes and U.S. Treasuries.
The partnership's origins can be traced back to Securrency, the institutional tokenization platform acquired by DTCC in 2023, which is now recognized as DTCC Digital Assets.
During an interview with CoinDesk, Dixon revealed that Securrency worked closely with Stellar developers to incorporate essential features for regulated financial institutions to issue assets on-chain, including clawback capabilities and transfer restrictions, which were subsequently integrated into the network.
“Some of the team has been working with Stellar for a long time,” Dixon remarked.
This development comes at a time when tokenization has emerged as a key focus in both the cryptocurrency and traditional finance sectors, attracting interest from numerous global banks and asset managers aiming to transition conventional financial instruments onto blockchain systems.
Tokenization involves representing assets such as U.S. Treasury bonds, money market funds, stocks, or private credit as digital tokens that can be issued, traded, and settled on blockchain platforms. Advocates suggest this technology could reduce settlement times, release collateral trapped in outdated processes, and ultimately enable continuous market operations.
The potential market for tokenized assets is substantial, with Standard Chartered estimating $2 trillion in tokenized assets by 2028, while BCG and Ripple predict a market size of $18.9 trillion by 2033.
Franklin Templeton's Early Investment in Stellar
Dixon emphasized that tokenized assets represent only the observable aspect of a larger shift in infrastructure.
“Blockchain excels at maintaining books and records,” she stated. “Tokenization is the end product, but the underlying components are critically important.”
This emphasis on record-keeping was a key factor in Franklin Templeton's choice of Stellar for its on-chain money market fund, BENJI. Dixon explained that the asset manager began investigating Stellar in 2019 and subsequently launched the fund in 2021, aiming to maintain fund records on a unified shared ledger instead of multiple databases.
BENJI became one of the first examples of a regulated tokenized fund and played a significant role in laying the groundwork for the current tokenized Treasury market, which has expanded to approximately $15 billion with major players like BlackRock, JPMorgan, and Fidelity entering the space.
Adapting Public Blockchains for Regulated Finance
For institutions, transitioning assets on-chain necessitates more than just expedited settlement.
Regulated entities must adhere to securities regulations, sanctions standards, and investor protection protocols, creating a demand for blockchain infrastructure that can accommodate identity verification, transfer restrictions, and other compliance measures.
This requirement for compliance-ready infrastructure is one reason Stellar's long-standing relationship with Securrency has proven beneficial, Dixon noted.
Stellar's framework enables issuers to incorporate compliance, identity controls, and privacy measures on top of an open network, she added. Asset issuers can determine whether transfers necessitate know-your-customer (KYC) checks, if assets can be frozen or clawed back, and what transaction information remains visible.
“The base layer will always be open,” Dixon concluded. “Then the institution gets to decide how compliance and privacy are integrated.”
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