The DTCC launches an unprecedented pilot project to represent onchain rights to US Treasury bonds, with explicit approval from the SEC.
The test is based on Canton Network and ComposerX platform, a permissioned infrastructure designed to meet institutional requirements.
This initiative comes as tokenized Treasurys approach $9 billion, up from $2.5 billion a year ago.
The tokenization of sovereign assets reaches a new milestone in the United States. The DTCC, a central but invisible pillar of the American financial markets, has announced the launch of a limited pilot project aimed at representing US Treasury bonds onchain. A historic first: these assets will remain securely held in the books of DTC, a DTCC subsidiary, but their ownership rights can be converted into blockchain tokens, with explicit regulatory approval.
This test, conducted in partnership with Digital Asset and Canton Network, follows a no-action letter from the SEC. The document allows the DTCC to experiment with tokenizing certain rights to securities, within a strictly defined framework. In other words, Washington is accepting for the first time that the core infrastructure of the American bond market touches upon blockchain, without disrupting the existing structure.
Tokenized Treasurys, within the regulatory framework
Concretely, participants in the DTC will be able to convert their rights to Treasury bonds held by the clearinghouse into tokenized representations. The underlying securities will remain registered on the centralized ledger of the DTCC. The tokens will not be independent securities, but digital mirrors of existing ownership rights.
The objective is clear: to test the operational benefits of tokenization without moving custody, compliance, or legal certainty that underpin the current system. The pilot is set to start in the first half of 2026, with a gradual ramp-up if demand and regulatory framework permit.
Canton Network, the blockchain chosen by Wall Street
The project relies on ComposerX, the internal platform of the DTCC, and Canton Network, a permissioned blockchain developed by Digital Asset. Canton is designed to meet institutional requirements: privacy, restricted transfers between authorized parties, and integrated compliance controls.
This choice is significant. It illustrates the direction taken by Wall Street: a blockchain, yes, but tailored to regulatory constraints, far from permissionless public networks. Brian Steele, president of DTCC’s clearing and securities services, summarizes the philosophy: enabling participants to benefit from tokenization while maintaining the legal and operational assurances of traditional markets.
Tokenized Treasurys, driving onchain real assets
This test comes amidst a strong growth in tokenized real assets. US Treasury bonds now represent nearly $9 billion in tokenized form, up from about $2.5 billion a year earlier. A rapid progression driven by the search for dollar returns combined with faster and programmable settlements.
So far, these products were mainly issued by asset managers or fintech companies. The entry of DTCC changes the game. It legitimizes the idea that tokenization will not be a parallel market, but a progressive extension of existing infrastructures.
This pilot is not an immediate revolution. But it sends a powerful signal: blockchain is starting to integrate into the heart of the American financial system, not bypassing it, but grafting onto it. For onchain finance, this may be the most strategic step to date.
