DTCC has launched a tokenization service supporting 34 securities, marking one of the clearest attempts yet to connect the U.S. market’s established post-trade infrastructure with blockchain-based ownership and settlement tools.
The service initially covers tokenized securities backed one-for-one by securities held in custody at the Depository Trust Company, DTCC said. Each tokenized instrument uses the same CUSIP identifier as its traditional-market equivalent, allowing market participants to link an on-chain representation to the security already recognized across conventional trading, clearing, and settlement systems.
The structure gives approved DTC-registered wallets the ability to transfer tokenized securities peer-to-peer around the clock, while retaining compliance controls and near real-time ownership records. That approach places the product closer to regulated market infrastructure than the loosely connected tokenization pilots that have often operated separately from traditional securities custody.
BitGo, Blockdaemon, Fireblocks, HashKey, Kaleido, Prometheum, Talos, Temple and Tradeweb were named as initial wallet and application partners. Ondo Finance joined the launch initiative as an ecosystem partner.
Dtcc links tokenized assets to existing securities records
The use of existing CUSIP codes addresses a practical obstacle in tokenized finance: whether a blockchain token represents the same legal and economic claim as the conventional security it is meant to track. By maintaining the identifier used in legacy markets, DTCC’s framework could allow participants to reconcile holdings across on-chain and off-chain systems without creating a separate reference standard.
The service also reflects a more cautious version of on-chain finance than the public-chain model associated with retail crypto trading. DTC registration, wallet controls and ownership monitoring would give financial institutions tools to meet transfer restrictions and recordkeeping requirements while extending settlement activity beyond ordinary market hours.
DTCC has not presented the initial rollout as a replacement for existing market plumbing. The first 34 securities instead create a limited operating environment in which custodians, wallet providers and trading technology firms can test tokenized transfers tied directly to traditionally custodied instruments.
That design could make tokenized assets more usable for institutions that have been reluctant to treat a token as a standalone substitute for a regulated security. It also puts the emphasis on interoperability and controlled distribution rather than on issuing large volumes of new on-chain assets.
Banks and financial firms expand regulated crypto services
The DTCC launch arrived alongside signs that banks and financial service providers are moving further into regulated digital-asset activity. In Brazil, Itaú Unibanco began offering cryptocurrency trading and custody after reporting the activity to the country’s central bank ahead of an October 30 regulatory deadline, the bank said.
In the United States, Strategy shareholders approved a proposal to shift four preferred-stock series—SSTRF, STRC, STRK and STRD—to daily dividend accrual. Preliminary results showed 99.3% support for the measure. Daily accrual would make the dividend calculation on those instruments more granular, a feature relevant to a company whose capital structure has become closely watched by Bitcoin-market participants.
Birch Hill, a New York firm serving as treasury manager for the on-chain lending protocol Morpho, also announced a $4 million seed round led by Multicoin Capital. ParaFi Capital, Castle Island Ventures and Nascent participated, bringing Birch Hill’s total funding to $6.5 million, according to the company.
Birch Hill said it has applied to the Financial Industry Regulatory Authority for broker-dealer status and plans to package U.S. multifamily housing, agriculture and energy loans for on-chain issuance. Such a model would bring tokenization beyond government securities and fund shares into credit markets, where underwriting standards, servicing and legal claims remain far more complex.
Y Combinator’s recent crypto startup guide described industry growth as increasingly institution-led rather than consumer-led. It identified stablecoins, artificial-intelligence financing, new banking models, real-world asset tokenization, trading platforms and crypto application-programming interfaces for AI agents as areas of focus over the next six months.
U.S. regulators confront jurisdiction and market structure
Regulatory boundaries remain unsettled, particularly where crypto platforms overlap with markets traditionally governed by other agencies. The Utah attorney general’s office filed 14 criminal charges against prediction-market operator Kalshi and its co-founders, Mansour and Lara, according to the supplied case summary.
The charges include one second-degree felony, 12 third-degree felonies and one class A misdemeanor. They stem from an undercover agent’s alleged placement of bets on 12 sports events after confirming the agent was located in Utah.
The case follows a lawsuit brought earlier in the week by the Commodity Futures Trading Commission against Utah. The CFTC has asserted exclusive federal jurisdiction over event contracts, creating a direct conflict between a federal derivatives regulator and state-level enforcement.
The agency has scheduled a December 15 public roundtable in Washington on the feasibility of 24/7 derivatives trading. The agenda includes overnight sessions, tokenization, infrastructure, staffing and operational readiness—questions that have become more pressing as blockchain systems enable continuous transfer and trading activity while many financial institutions retain market-hour processes.
U.S. Treasury Secretary Scott Bessent also said the Treasury Department would work to bridge gaps between Securities and Exchange Commission and CFTC oversight of crypto, regardless of whether Congress acts. The comment signals that federal agencies may seek coordination through administrative measures even as legislative efforts to define crypto market structure remain unresolved.
Monetary policy remains a constraint on risk assets
The Federal Reserve voted 10-2 to leave its benchmark interest-rate target unchanged at 3.75% to 4%. Governors Lisa Cook and Beth Hammack, president of the Cleveland Federal Reserve Bank, dissented in favor of a 25-basis-point increase.
The Federal Open Market Committee reiterated its goal of returning inflation to 2% and said incoming information would guide future decisions. With two officials advocating a further increase, the decision leaves the possibility of another rate rise in December open rather than establishing a firm turn toward easier monetary policy.
Crypto markets have increasingly been shaped by this conventional financial backdrop. Tokenization projects may expand access to securities and settlement networks, but their near-term use will depend on interest rates, regulatory treatment and the willingness of banks, custodians and brokers to support the systems around them.
Security concerns remain outside the tokenization narrative
New infrastructure does not remove operational risks for cryptocurrency users and service providers. Coinbase said recent exposure was linked to a security incident at third-party analytics provider Amplitude, rather than a breach of Coinbase’s internal systems. The company said it found no evidence of unauthorized access to internal systems or impact on customer funds, and would notify affected customers and regulators where required.
Developers also reported three Bitcoin Core vulnerabilities. One could remotely crash nodes on Windows, macOS and BSD systems by exhausting memory; Linux nodes are not affected by that particular attack. The other reported issues could gradually deplete node memory or corrupt blockchain undo data.
As DTCC and banks bring tokenized securities into more formal financial settings, these incidents underline the division between the legal certainty of an asset claim and the technical resilience of the software, wallets and service providers used to access it.
Want to understand tokenized securities better? Deepen your knowledge with our guide on tokenized equities and on-chain markets.
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