The Depository Trust & Clearing Corporation and the Stellar Development Foundation announced a planned collaboration on May 27 to tokenize traditional securities held in DTC custody. The integration, expected in the first half of 2027, will connect DTCC’s tokenization service with Stellar’s blockchain.
SEC-backed pilot for tokenized securities
The project is tied to a no-action letter the Securities and Exchange Commission issued in December 2025. That letter supports a three-year pilot program for tokenizing DTC-custodied traditional securities. The initiative is not a live settlement overhaul but a planned future integration within a broader multi-chain strategy.
Which assets are involved
Initial use cases cover liquid equities from the Russell 1000 index, ETF index trackers, and U.S. Treasury securities. These represent some of the most actively traded instruments in global markets. Tokenizing them would allow faster, round-the-clock settlement and reduce friction in post-trade processes.
Why Stellar was chosen
Stellar has built its network around payments, asset issuance, and compliance-friendly token movement. That makes it suitable for institutional tokenization, where regulatory requirements are strict. The foundation’s focus on permissioned-style features aligns with DTCC’s need to operate within existing financial rules.
The collaboration is part of a broader push by DTCC to test multiple blockchains. No single chain is locked in as the sole platform for future tokenization.
DTCC and Stellar have not released detailed technical specifications or a firm launch date beyond the first-half 2027 target. The SEC no-action letter expires after three years, giving the pilot a fixed window to prove whether tokenized DTC assets can work at scale.
