Morgan Stanley says it is among first banks to tokenize U.S. stocks and Treasuries
Morgan Stanley joins early users of DTCC service
Morgan Stanley said it is among the first banks to tokenize real-world assets. It said it began using the Depository Trust and Clearing Corporation’s Tokenization Service, or DTS.
The service went live on Oct. 28. It creates blockchain-based versions of U.S. stocks and Treasuries. A blockchain is a shared digital record system.
Tokenizing means creating a digital version of a security. That digital version can be traded on a blockchain 24 hours a day, seven days a week.
Main details from the announcement
- Morgan Stanley said it began tokenization after the launch of DTS on Oct. 28.
- DTCC is the company that clears and settles most U.S. stock and bond trades.
- Tokens represent securities held by DTCC’s depository subsidiary. They keep the same ownership rights and investor protections as the originals.
- Twenty firms have signed up for the service so far.
What Morgan Stanley said
Morgan Stanley said this in a post on X. Amy Oldenburg, the bank’s head of digital assets strategy, also commented.
Oldenburg said: “The hands-on experience of integrating tokenized securities with established market infrastructure will inform the continued development of the firm’s digital asset capabilities as the market evolves.”
CoinDesk said it reached out to Morgan Stanley for comment. It said it did not receive a response at the time of writing.
How the tokens work
Under DTS, DTCC’s Depository Trust Company mints tokens. Minting means creating the tokens. The tokens represent securities it already holds.
Users can swap between the original securities and the tokens. They can also send tokens to their own digital wallets. A digital wallet is a tool for holding digital assets.
The service runs on two blockchains. They are Canton and DTCC’s private Besu network. DTCC said more blockchains are planned for 2027.
The Securities and Exchange Commission cleared the project in a December 2025 no-action letter. The service covers Russell 1000 stocks, exchange-traded funds that track major indexes, and Treasuries. An exchange-traded fund, or ETF, is a fund traded on an exchange.
Who has signed up and what DTCC claims
Twenty firms have signed up so far. They include Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.
DTCC said tokenization can improve liquidity. Liquidity means how easily an asset can be traded. DTCC also said it can make collateral easier to move and help use capital more efficiently. These are claims by DTCC.
What is planned next
DTCC said more blockchains are planned for 2027. Morgan Stanley said its experience with the service will inform what it builds next in digital assets.
Source for this report
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.