Morgan Stanley has started tokenizing U.S. stocks and Treasury securities through a newly launched blockchain service operated by the Depository Trust & Clearing Corporation (DTCC). The bank is among the first financial institutions to use the new system as traditional finance continues moving toward blockchain-based assets.
In an announcement on November 4, Morgan Stanley confirmed that it had converted traditional financial assets into digital representations through DTCC’s tokenization platform.
The development follows DTCC’s October 28 launch of the service, which brought together 20 major financial institutions, including JPMorgan, Citi, Bank of America, Barclays and Morgan Stanley.
Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said the experience of working with tokenized securities through existing financial infrastructure would help the bank expand its digital asset services as the market develops.
The bank is also preparing to support tokenized stock trading through its alternative trading system (ATS) in the first quarter of 2027. However, this planned trading service is separate from its current participation in DTCC’s platform.
DTCC’s new service allows approved financial institutions to create blockchain-based versions of securities already held in its custody system. These digital versions maintain the same ownership rights, financial benefits and investor protections as traditional securities.
The platform initially supports the Canton Network and a private Besu blockchain, with additional blockchain integrations expected in 2027. Eligible institutions can use the system to convert securities between traditional and digital formats and transfer tokenized assets to supported wallets.
DTCC said the service covers eligible U.S. stocks, Treasury securities and exchange-traded funds (ETFs). The company oversees more than $114 trillion in assets held through its custody system, although this does not mean that all those assets have been tokenized.
Morgan Stanley has been expanding its digital asset operations over the past several months. In September, the bank established a Digital Asset Lab to explore stablecoins, tokenized deposits, money market funds and decentralized finance applications.
The bank has also been developing digital wallet infrastructure to help customers manage tokenized securities and other blockchain-based assets. Morgan Stanley previously estimated that the tokenized asset market could reach between $3 trillion and $10 trillion by 2030.
Other major financial institutions are also moving in the same direction. On November 2, the New York Stock Exchange announced four additional partners for its planned blockchain-based trading platform.
Broadridge, Computershare, Equiniti and Superstate joined Securitize and tZERO in supporting the proposed platform. The system is designed to allow continuous trading, faster settlement and stablecoin-based payments while maintaining traditional shareholder rights.
However, the NYSE platform still requires regulatory approval and does not yet have a confirmed launch date.
Morgan Stanley’s latest move shows that major Wall Street institutions are increasingly testing blockchain technology for traditional financial assets, including stocks, government bonds and investment funds.