Morgan Stanley ($MS) has begun turning U.S. stocks and Treasuries into digital tokens through a new service from the Depository Trust & Clearing Corporation. The securities stay…
Original source excerpt
Morgan Stanley ($MS) has begun turning U.S. stocks and Treasuries into digital tokens through a new service from the Depository Trust & Clearing Corporation. The securities stay in custody while parti…
Morgan Stanley ($MS) has begun turning U.S. stocks and Treasuries into digital tokens through a new service from the Depository Trust & Clearing Corporation. The securities stay in custody while participating firms can move a digital record of the ownership rights between eligible wallets. One reason a bank would want to do this is collateral. A firm that needs to pledge a Treasury against an obligation could move the token within minutes. The holder retains the same economic rights and investor protections, and the security can be converted back into its traditional form. The service launched October 28 with 20 institutions signed up, including JPMorgan Chase ($JPM), Citigroup ($C) and Fidelity Investments. The depository behind it holds more than $114 trillion in assets. That figure measures the size of its custody business. Only eligible securities that participants choose to convert become tokens. For now, the system connects to two blockchains, the Canton Network and DTCC’s private Besu network. DTCC says more networks are planned for 2027. More than 150 firms helped shape the service before it launched. Trading those shares is a separate step. Morgan Stanley now expects its alternative trading system to support tokenized equities in the first quarter of 2027, later than its earlier target of the second half of 2026. The bank can already create the tokens while it finishes building the venue where customers could trade them.
AI context is not available for this statement. The original source can be read independently.