In Brief
- DTCC collaborates with Canton Network to tokenize U.S. Treasury bonds.
- Tokenization will improve market liquidity, transparency, and efficiency.
- DTCC takes a leadership role in Canton Network’s decentralized governance.
The Depository Trust & Clearing Corporation (DTCC) has partnered with Canton Network to tokenize U.S. Treasury securities.
This collaboration aims to bring traditional financial assets to the blockchain, leveraging Canton’s privacy-focused platform. DTCC will mint a subset of U.S. Treasury securities held by the Depository Trust Company (DTC) onto the Canton Network.
The partnership follows DTCC’s receipt of a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), which allows them to tokenize real-world, DTC-custodied assets.
The pilot project will begin in the first half of 2026, with future plans for expansion based on market interest.
Privacy and Efficiency at the Core of the Project
The partnership highlights the importance of security and privacy in tokenization efforts. Canton Network’s permissioned structure ensures that transactions remain confidential, addressing key concerns in institutional finance.
The initiative is expected to enhance liquidity, operational efficiency, and market transparency by utilizing blockchain technology. DTCC’s CEO, Frank La Salla, stated that this collaboration creates a roadmap for future digital infrastructure, bridging traditional and digital financial ecosystems.
The tokenization process will reduce operational risk, streamline processes, and enhance capital efficiency for market participants. As part of the project, DTCC will also take on a leadership role within the Canton Foundation, co-chairing the decentralized governance structure.
This role will allow DTCC to influence industry standards for decentralized financial infrastructure. If successful, the project could accelerate the adoption of tokenized systems, reducing settlement times and offering new liquidity opportunities for institutional investors.
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Source: https://coincu.com/news/dtcc-partners-with-canton-network-to/
