Morgan Stanley to Use DTCC Service to Tokenize US Stocks, Treasuries

Morgan Stanley is joining a project to convert US stocks and Treasuries into blockchain-based digital tokens.

On November 3, the Wall Street bank said on its official X account that it is among the initial participating banks using the Depository Trust & Clearing Corp.'s tokenization service, DTS, to pursue real-world asset tokenization.

DTS, launched by DTCC on October 28, is a service that represents securities held by its depository subsidiary, the Depository Trust Co., in tokenized form. It is designed to convert securities traded in traditional financial markets into digital tokens for broader use.

Morgan Stanley plans to use the service to tokenize US stocks and US Treasuries. The bank's aim is to put traditional financial assets on a blockchain-based framework and expand their range of use.

DTS is focused on improving securities liquidity and facilitating the movement of collateral assets. Its main goal is to help financial institutions use the assets they hold more efficiently and improve capital efficiency.

Morgan Stanley's participation is drawing attention because it marks a case of a traditional financial institution introducing securities tokenization technology into actual financial operations. Specific details, including the scale of the tokenization effort and the start date for trading, were not disclosed.