Morgan Stanley Tokenizes U.S. Equities and Treasurys via DTCC

TL;DR

• Morgan Stanley began tokenizing U.S. equities and Treasurys through DTCC’s Tokenization Service, becoming one of the first banks to use the infrastructure.
• DTCC’s service creates tokenized representations of securities held at its depository subsidiary and initially supports Canton Network and a Besu network.
• Morgan Stanley says the hands-on experience will inform its digital asset strategy as it prepares to support tokenized equities on its alternative trading system in Q1 2027.

Morgan Stanley has begun using the Depository Trust & Clearing Corporation’s new Tokenization Service to convert U.S. equities and Treasurys into tokenized form. In an official announcement, the bank said it is among the first banks to tokenize real-world assets through the platform. The move gives Morgan Stanley hands-on exposure to regulated tokenized securities infrastructure, extending its involvement in real-world asset tokenization as traditional securities increasingly move onto blockchain rails within a framework designed for institutional market participants.

We are thrilled to announce that Morgan Stanley is among the first banks to tokenize real-world assets following the launch of the @The_DTCC Tokenization Service (DTS), converting U.S. Equity and U.S. Treasuries to tokenized form.

Launched on October 28, DTS creates tokenized… pic.twitter.com/wUNMnYB5gC

— Morgan Stanley (@MorganStanley) November 3, 2026

Morgan Stanley Expands Institutional Tokenization

DTCC launched the service on October 28 with 20 participating institutions. The infrastructure creates tokenized representations of securities held by Depository Trust Company, DTCC’s depository subsidiary, rather than issuing unrelated synthetic products. Initial support includes Canton Network and DTCC’s private Besu network. Morgan Stanley is therefore using blockchain representations tied to securities already held within established market infrastructure, across existing securities custody systems, building on the broader DTCC tokenization rollout.

Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said integrating tokenized securities with established market infrastructure would inform the continued development of the firm’s digital asset capabilities as the market evolves. The bank did not disclose which equities or Treasurys it tokenized, their value or transaction volume. The announcement confirms operational use of the service without revealing the scale of Morgan Stanley’s tokenized positions, fitting with the firm’s broader digital asset strategy.

The deployment is separate from Morgan Stanley’s plan to support tokenized equities on its alternative trading system. The bank expects that capability in the first quarter of 2027, later than an earlier target for the second half of 2026. Using DTCC’s service now gives Morgan Stanley practical experience before its planned tokenized-equities trading support goes live, while the market continues testing tokenized U.S. securities across institutional settlement infrastructure before broader institutional adoption.

DTCC’s service launched with a wider group of banks, asset managers and market participants, with additional users expected to join over time. For Morgan Stanley, the immediate significance lies in integrating tokenized securities into existing workflows rather than replacing traditional market structures outright. The bank’s participation connects blockchain settlement technology with conventional securities infrastructure under an institutional model, adding another practical deployment to the growing Wall Street tokenization stack as financial firms explore how digital representations can coexist with established custody, trading and settlement systems at regulated scale.