Morgan Stanley has joined a growing group of major financial institutions adopting blockchain-based securities infrastructure, describing itself as one of the first banks to use a new Wall Street tokenization platform for U.S. equities and Treasury securities.
The bank disclosed its involvement through a post on X, explaining that its tokenization efforts began after the Depository Trust & Clearing Corporation (DTCC) introduced its Tokenization Service (DTS) on October 28. DTCC is responsible for clearing and settling most stock and bond transactions in the United States.
Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said the bank’s participation would provide important experience as it develops its future blockchain initiatives.
She explained that working directly with tokenized securities while integrating them into established financial market infrastructure would help shape the firm’s digital asset strategy as the industry develops.
Tokenization involves converting traditional financial instruments into blockchain-based digital representations. This allows eligible securities to be transferred and traded digitally, potentially offering continuous access beyond conventional market hours.
Under the DTS system, DTCC’s Depository Trust Company (DTC) issues digital tokens representing securities already held in custody. DTCC maintains that tokenized assets carry the same ownership rights and investor protections as their traditional counterparts. Investors can switch between conventional and tokenized formats or transfer the digital tokens to their personal wallets.
According to DTCC, the technology could improve market liquidity, streamline collateral transfers and help financial institutions manage capital more efficiently.
The platform currently operates on Canton and DTCC’s private Besu blockchain network, with additional blockchain integrations expected in 2027.
The Securities and Exchange Commission authorized the project through a no-action letter issued in December 2025. Initially, the service covers Russell 1000 stocks, exchange-traded funds tracking major market indexes and U.S. Treasury securities.
About 20 financial institutions have signed up for the initiative. These include Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.
CoinDesk sought additional information from Morgan Stanley regarding its participation but had not received a response by publication time.
