On October 28, 2026, the Depository Trust Company (DTC) launched the DTCC Tokenization Service. Eligible firms can now convert DTC-custodied securities into tokens, hold them in their own wallets and convert them back. Twenty DTC Participants signed agreements to use the service at launch, and Kaleido is one of 18 ecosystem collaborators and partners DTCC named in its launch announcement.
The launch follows the live production trades DTCC ran in July with more than 30 firms. DTCC moved from those trades to launch in a little over three months, and it will onboard more users on a rolling basis.
DTC now issues tokenized representations of securities it holds in custody. At launch, 34 securities are available to tokenize. The December 2025 SEC No-Action Letter covers Russell 1000 constituents, ETFs tracking major indices and U.S. Treasury securities.
Each token is backed 1:1 by a security held at DTC and carries the same legal rights, economic interests and investor protections. The token and the traditional security also share one CUSIP. That keeps both forms in a common liquidity pool.
Once tokenized, a security can move peer to peer between DTC-registered wallets on the same chain, 24 hours a day, seven days a week. DTCC has built token controls into the service for compliance, with near real-time visibility into who owns what.
The 20 DTC Participants that signed agreements include Bank of America, Barclays, BNP Paribas, Citi, Citadel Securities, Fidelity Investments, J.P. Morgan, Morgan Stanley, State Street and UBS.
The 18 ecosystem collaborators and partners cover wallets, custody, trading and connectivity. Alongside Kaleido, they include BitGo, Blockdaemon, Broadridge, DFNS, Fireblocks, Ondo, Talos, Taurus and Tradeweb.
The service runs on DTCC's private Besu network and on the Canton Network. DTCC plans to add more networks in 2027.
The two chains work differently. Besu is EVM-based and Canton is not, so each has its own wallet model, key handling and transaction flow. A firm needs a registered wallet on each chain it plans to use, and tokens transfer between wallets on the same chain.
DTCC runs a bring-your-own-wallet model. Each firm sets up wallets through a provider that integrates with the service, then registers those wallets with DTC. On the DTCC side, onboarding covers eligibility, terms, users, wallets, eligible assets and operational testing.
On the firm's side, the work starts with wallets on Besu, Canton or both, with keys held in the firm's own keystore or HSM. Next come policy controls in front of signing, such as approval quorums, limits and counterparty rules. Operations teams need workflows to tokenize, transfer and redeem positions without writing to the chain by hand. And finance teams need token balances to match the firm's books and records.
Kaleido appears on DTCC's list of wallet providers and applications for the service and on the Canton Network's list of institutional wallet providers for DTCC access. We work on both networks DTCC chose: Kaleido is a core enterprise maintainer of Besu and a founding member of the Canton Foundation.
Our DTCC Industry Pack covers each of those steps. DTC Participants and their clients run nodes and wallets on Besu and Canton from one platform, with wallet registration, tokenization and settlement workflows for the DTCC service and an interface for operations teams.
The firm keeps control of its keys. Kaleido does not generate or hold private keys on your behalf: firms can use Kaleido-hosted HSMs or connect their own, such as Thales Luna, Fortanix, AWS CloudHSM or Azure Key Vault. Our policy engine checks every transaction before signing, with integrations for Chainalysis (AML) and Notabene (Travel Rule). Pre-configured indexes then reconcile token positions on both chains against the firm's existing books and flag any breaks.
If your firm is planning its connection to the DTCC Tokenization Service, talk to our team.
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