On-chain issuance on the Canton Network
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DTCC announced on the 17th that it plans to issue a portion of its U.S. Treasury securities held at its subsidiary, The Depository Trust Company (DTC), on the Canton Network, a permissioned blockchain. Canton Network, developed by Digital Asset, is an institutional blockchain aimed at enabling on-chain transactions tailored to regulatory environments.
Frank LaSala, CEO of DTCC, described the project as "a roadmap for tokenizing real assets, starting with U.S. Treasuries and expanding to a variety of DTC-eligible assets across the network." DTCC is a key authority responsible for clearing and settling U.S. securities, and its subsidiaries processed approximately $3.7 trillion (KRW 5,470.45 trillion) worth of securities transactions last year.
Last week, the SEC issued a no-action letter to DTCC, stating that it would not take enforcement action against the company for providing securities tokenization services on a pre-approved blockchain for three years. The scope of this approval includes highly liquid asset classes such as U.S. Treasury bonds and bonds, exchange-traded funds (ETFs) tracking major indices, and constituents of the Russell 1000 index.
DTCC plans to launch a minimum viable product in a controlled environment by the first half of 2026, with the project scale gradually expanding based on customer demand. DTCC will also co-chair the Canton Foundation with Euroclear and participate in network governance.
The market is seeing this move as a signal of a shift toward on-chain capital markets. SEC Chairman Paul Atkins stated, "The U.S. financial market is preparing to move to on-chain." However, some analysts believe the impact of tokenization on the cryptocurrency market will be gradual. Greg Cipolaro, Global Head of Research at NYDIG, analyzed that while tokenized assets could potentially integrate with decentralized finance in the long term, regulatory and infrastructure development will take time.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
