The Depository Trust & Clearing Corporation (DTCC), which clears nearly $4 quadrillion in annual transactions and custodies $100 trillion in assets, announced it will tokenize US Treasury securities on the Canton Network. This represents a massive vote of confidence from traditional finance in blockchain technology and follows regulatory approval from the Securities and Exchange Commission (SEC) last week.
The move signals a pivotal shift in onchain finance, with systems like Canton being chosen for their ability to mirror how regulated markets operate, comply with frameworks, and scale securely at institutional levels. Ari Redbord of TRM Labs noted, "I have never seen anything move as quickly once it got going." This development is part of a broader pro-crypto push within US capital markets under President Donald Trump's administration.
The decision has sparked debate within the crypto community. While it highlights how traditional finance giants like BlackRock, State Street, and Deutsche Bank are accelerating tokenization efforts—a sector that has surged to $410 billion in 2025—some critics argue the DTCC missed an opportunity. Crypto lawyer Gabriel Shapiro criticized the choice of Canton, a permissioned network, stating it "enshrin[es] existing intermediaries" like DTCC and Broadridge instead of eliminating them, which he views as the primary goal of tokenization.
Regulatory momentum continues in Washington. The SEC and the Commodity Futures Trading Commission (CFTC) are actively shaping the landscape. Earlier in December, the CFTC launched a digital assets pilot program including Bitcoin, Ethereum, and USDC. SEC Chair Paul Atkins is also working to "future-proof" the agency's crypto regulations.
Institutional interest is broadening significantly. Robert Crossley, global head at Franklin Templeton, observes that interest now extends beyond niche groups to include established investors seeking diversification and younger investors comfortable with digital assets. This convergence is fueled by crypto-friendly regulatory shifts in the US, UK, and EU, and is evidenced by the success of crypto ETFs, which have attracted over $100 billion since 2024. Approximately 75 new crypto-backed ETFs launched in 2025, with 126 more filings in the pipeline.
