Key facts
- BlackRock, JPMorgan, and Goldman Sachs are participating in a DTCC pilot to tokenize stocks and Treasurys.
- The pilot program aims to integrate blockchain technology with existing market infrastructure.
- Participating firms will use tokenized assets for transactions like collateral transfers and repo deals.
- The DTCC custodies up to $114 trillion in assets, making this a significant tokenization initiative.
- The DTCC will use HyperLedger Besu or the Canton network for the pilot.
Wall Street giants BlackRock, JPMorgan, and Goldman Sachs are among nearly 40 financial firms participating in a Depository Trust & Clearing Corporation (DTCC) pilot program aimed at tokenizing stocks and Treasurys. The initiative, which began with the tokenization of Microsoft and Circle shares, as well as various ETFs including Invesco QQQ Trust, State Street SPDR S&P 500 ETF, and BlackRock’s iShares 0-3 month Treasury Bond ETF, seeks to integrate blockchain technology into existing market infrastructure.
JPMorgan successfully completed the first equity token conversion involving the Invesco QQQ Trust (QQQ) ETF, demonstrating how tokenized representations of traditional assets can operate within the current market framework while retaining liquidity, transparency, and protections. The DTCC, which custodies up to $114 trillion in assets, will store these tokenized assets on the blockchain, utilizing either the HyperLedger Besu private blockchain or the Wall Street-backed Canton network. Participating firms will use these tokenized assets for transactions such as collateral transfers, repo transactions, and equity trades. The DTCC plans to officially launch the tokenization program in October, following a similar initiative in the UK.
The DTCC stated that the conversion highlights how tokenized assets can operate within existing market infrastructure while maintaining the same liquidity, transparency, rights, and protections as the underlying traditional asset.