The Depository Trust and Clearing Corporation plans to bring tokenized US Treasury securities onchain, starting with a limited set of assets.

The firm said the initiative will use the Canton Network, a permissioned blockchain developed by fintech company Digital Asset.

DTCC said it will enable a subset of US Treasury securities held at its Depository Trust Company subsidiary to be minted on the network. Chief executive Frank LaSalla said the collaboration creates a roadmap for real-world tokenization use cases, beginning with Treasurys and expanding over time.

DTCC operates key infrastructure for clearing, settlement, and trading in US markets. Its subsidiaries processed $3.7 quadrillion in securities transactions last year.

The company said it received a no-action letter from the Securities and Exchange Commission on Thursday covering a tokenization service. The letter allows the service to operate on pre-approved blockchains for three years and states the SEC will not take enforcement action if it functions as described.

DTCC said it is working with partners to launch a minimum viable product in a controlled environment by the first half of 2026. The company said the project’s size and scope will expand in subsequent months based on client interest.

DTCC added that the broader partnership roadmap is expected to unfold over multiple years. The SEC letter applies to a defined set of highly liquid assets, including US Treasury bills, bonds, and notes.

It also covers exchange-traded funds tracking major indexes and the Russell 1000 index of large US companies.

DTCC said it will join the governance of the Canton Network and serve as co-chair of the Canton Foundation alongside Euroclear. SEC Chair Paul Atkins said the initiative marks an important step toward onchain capital markets.

Atkins said US financial markets are poised to move onchain and that the agency is prioritizing innovation.

NYDIG research head Greg Cipolaro said the tokenization of securities is unlikely to immediately impact crypto markets. He said most tokenized assets remain on private blockchains and still rely on traditional financial structures.

Cipolaro said broader integration could develop over time as technology, infrastructure, and regulatory frameworks evolve.