Digitalising financial infrastructure: A new move by US securities depository

Phan Duc Trung, Chairman of the Viet Nam Blockchain and Digital Assets Association (VBA), made the remarks in an interview with Nhan Dan Newspaper following the October 28, 2026 announcement that the DTCC – the largest securities depository, clearing and settlement infrastructure provider in the US – had officially launched its securities tokenisation service.

The development also demonstrates that blockchain is being integrated into the core infrastructure of capital markets.

According to the DTCC, its subsidiaries processed securities transactions worth approximately 4.7 quadrillion USD in 2025 alone. Among them, the Depository Trust Company (DTC), one of its subsidiaries, holds more than 114 trillion USD in assets from issuers across over 150 countries and territories.

Wall Street’s depository infrastructure undergoes transformation

Established in 1999 through the merger of the DTC and the National Securities Clearing Corporation (NSCC), the Depository Trust and Clearing Corporation (DTCC) plays a central role in post-trade operations in the US capital markets. It provides custody, clearing and settlement services for most transactions involving shares, bonds, exchange-traded fund (ETF) certificates and US Treasury securities.

The DTCC’s Board of Directors includes representatives from many leading financial institutions, such as JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citibank, BNY, Barclays and UBS.

Therefore, the DTCC’s launch of its securities tokenisation service is more than simply the introduction of a new technology product. It signals that blockchain is being recognised as a tool for modernising the recording, transfer and management of assets in traditional finance.

“As Wall Street’s ‘keeper of the books’, the DTCC provides the foundation for ensuring that every transaction is accurately recorded, settled on time and subject to effective systemic risk controls. Therefore, when this very institution puts securities tokenisation into operation, it is seen as a signal that blockchain is entering the core of the traditional financial system,” Phan Duc Trung said.

Under the mechanism announced by the DTCC, DTC participants can convert securities held in custody into tokens and vice versa. Each token is backed on a 1:1 basis by securities held in custody at the DTC, while ownership rights, economic entitlements and investor protection mechanisms are maintained.

The DTCC describes these tokens as “digital twins” of securities. The underlying assets remain within the custody system; what changes is how ownership and associated entitlements are represented, verified and transferred through digital infrastructure.

To date, 20 DTC participants have signed agreements to access the service, including JPMorgan, Bank of America, Citi, Morgan Stanley, Fidelity, Barclays and UBS. However, the DTCC has yet to disclose the value of assets tokenised or the actual transaction volume.

“The DTCC’s launch of securities tokenisation could mark a turning point for global capital markets through two major impacts: enabling collateral to move around the clock, 24 hours a day, seven days a week, thereby optimising capital efficiency across the system; and narrowing the divide between traditional finance and digital assets, as both securities and settlement money move on the same infrastructure,” Phan Duc Trung said.

Marking a turning point in global financial markets

During pilot transactions conducted on July 15, 2026, involving more than 30 organisations, including BlackRock, Goldman Sachs, JPMorgan and Nasdaq, the DTCC focused on collateral pledging, securities lending, Treasury repo transactions and margining. These are routine operations between financial institutions and have a direct bearing on the system’s capital efficiency.

When asset transfers are restricted to business hours, financial institutions generally have to maintain larger cash reserves to cope with unexpected developments outside trading hours. Securities tokenisation, combined with the ability to verify and transfer assets continuously, could help reduce the need for such reserves, thereby improving the efficiency of capital utilisation and allocation.

“However, faster transfers do not automatically create liquidity. Liquidity depends on buyers, sellers, pricing capabilities and the level of market acceptance. An asset that is difficult to sell in the real world does not become easier to sell simply because it is put on a blockchain,” Trung added.

According to Phan Duc Trung, the greater significance of the tokenisation system being deployed by the DTCC lies in interoperability, rather than merely transaction speed or the ability to operate 24/7. The DTCC is operating Canton – a public network developed by Digital Asset – alongside Besu, a private network under its control. It also plans to add Stellar and Arc, a blockchain developed by Circle, the issuer of the USDC stablecoin, from 2027.

This approach shows that the DTCC does not intend to confine tokenised securities to a standalone system. Instead, it is placing these assets in an environment where digital assets and digital currencies can operate together. In the long term, this is a prerequisite for addressing the cash settlement stage, as a transaction can only be completed instantaneously when both securities and settlement money can move seamlessly on the same infrastructure or across interconnected systems. This would enable transactions to be settled almost instantly while reducing risks and capital costs for market participants.

“Each market, including Viet Nam, has its own pace of infrastructure development and legal reform. I do not regard the DTCC’s move as a model to be copied, but rather as a reference for financial institutions and technology companies when considering how to pursue meaningful tokenisation. A token can be created very quickly. But infrastructure that earns the market’s trust must be built on technology, rules and accountability,” Trung emphasised.