Morgan Stanley reportedly among first banks to tokenize U.S. equities and Treasuries via DTCC

📅 04 November 2026 • CoinDesk

Morgan Stanley reportedly among first banks to tokenize U.S. equities and Treasuries via DTCC

According to CoinDesk, Morgan Stanley says it is among the first banks to tokenize real-world assets, converting U.S. equities and U.S. Treasuries through the DTCC Tokenization Service (DTS). The bank announced the step in an official X post on 3 November 2026, and CoinDesk first reported it on 4 November, noting that the bank did not respond to a request for comment, so the framing here stays with reportedly and according to.

DTS went live on 28 October 2026, launched by the Depository Trust Company (DTC), the depository subsidiary of DTCC that safeguards more than $114 trillion in assets under custody. DTC mints tokenized representations of custodied securities, so-called digital twins, which retain the ownership rights, investor protections and economic entitlements of the original holdings.

The scope is set by a U.S. SEC No-Action Letter from December 2025, covering Russell 1000 constituents, ETFs on major indices and U.S. Treasuries, with conversion in both directions and the option to move tokens to clients' own digital wallets. 20 DTC participants signed agreements at launch, including J.P. Morgan, Citi, Bank of America, Fidelity, Citadel Securities, State Street, UBS, Barclays and BNP Paribas. More than 150 firms shaped the service in the DTC working group, and in July 2026 30+ firms completed initial limited-production trades.

Technically, DTS is integrated with the Canton Network and DTCC's private Besu network, with additional blockchain networks planned for 2027. DTCC targets tokenization and conversion processing in 15 minutes or less during business hours, aiming at greater liquidity, collateral mobility and capital efficiency.

Amy Oldenburg, Morgan Stanley's head of digital assets strategy, said the hands-on experience of integrating tokenized securities with established market infrastructure will inform the development of the firm's digital asset capabilities as the market evolves. DTCC President and CEO Frank La Salla framed the launch as bringing tokenized securities into a regulated framework, a foundation for responsible institutional adoption. Per The Block, Morgan Stanley also targets tokenized equities on its own ATS in Q1 2027, pushed back from H2 2026.

IMPACT
For institutional investors, brokers and custodians, U.S. equities and Treasuries gain a tokenized track inside regulated market infrastructure. Compliance teams should expect updated onboarding for digital wallets, revised custody terms and AML screening for tokens that can move to client wallets. Timelines are near-term, with 15-minute processing targets, 20 participants already live and Morgan Stanley planning ATS support in Q1 2027. Risks: scope is limited by the SEC No-Action Letter, and wider bank adoption remains to be confirmed.

Sources: coindesk.com, dtcc.com, x.com, theblock.co, ledgerinsights.com

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Morgan Stanley reportedly among first banks to tokenize U.S. equities and Treasuries via DTCC

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