Today the DTCC launched the first phase of limited live transactions for tokenization, with JP Morgan processing the inaugural conversion from a conventional to a tokenized version of Invesco’s QQQ ETF. The DTC received a no action letter from the SEC in December 2025 allowing it to tokenize stocks in the Russell 1000 alongside ETFs and US Treasuries. In May the timescale was unveiled alongside a 50-strong industry working group. These are initial trades in a controlled production environment, with the rollout of the tokenization offering planned for October.
Apart from straight conversions to tokenized form, these first live transactions have also demonstrated other applications. For example, JP Morgan posted tokenized securities as margin at the CME, Societe Generale posted tokenized Treasuries as collateral with Citadel Securities, and Citadel Securities also participated in a securities lending transaction with BNP Paribas.
One common misconception is that any transfer of DTCC tokenized securities will have to settle via DTCC’s post trade infrastructure, which is T+1. That is not correct. Real time direct transfers are enabled between parties without involving the DTCC directly, although all wallets that touch the tokens must be included in the allow list. This first phase of transactions appears to primarily involve clearing members of the DTCC, but once it goes fully into production the idea is that clearing members will add their clients’ wallets to the allow list. This could eventually mean any US stockholder would be able to hold a tokenized stock if their broker supports it. We previously explored how the tokenized stock offering works in depth.
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