Morgan Stanley is positioning itself among the early banking adopters of Wall Street’s latest blockchain-based securities infrastructure, which enables traditional U.S. stocks and Treasury securities to be represented as digital tokens and traded on blockchain networks.
The financial institution confirmed its participation in a post on X, stating that it began working with tokenized securities following the October 28 launch of the Depository Trust & Clearing Corporation’s (DTCC) Tokenization Service, also known as DTS. DTCC plays a central role in the U.S. financial system by clearing and settling the majority of domestic stock and bond transactions.
Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said the bank’s initial involvement would provide practical knowledge to support its broader digital asset strategy.
She noted that connecting blockchain-based securities with existing financial market infrastructure would help the firm develop its digital asset capabilities as the tokenization industry continues to evolve.
Tokenization converts conventional financial instruments into digital representations that can be transferred and traded on blockchain networks, potentially enabling transactions around the clock.
Under the DTS framework, DTCC’s Depository Trust Company (DTC) creates digital tokens representing securities already held in its custody. DTCC says these blockchain-based versions preserve the same ownership rights and investor protections as the underlying traditional assets. Investors can move between tokenized and conventional formats and transfer the digital versions to their personal wallets.
DTCC expects the technology to deliver several benefits, including improved liquidity, faster collateral movement and more efficient capital management.
The service currently supports two blockchain networks: Canton and DTCC’s private Besu network. The organization plans to introduce additional blockchain integrations in 2027.
The initiative received regulatory clearance through a no-action letter from the Securities and Exchange Commission in December 2025. Its initial scope includes Russell 1000 companies, exchange-traded funds tracking major stock indexes and U.S. Treasury securities.
Approximately 20 financial firms have already joined the platform. Alongside Morgan Stanley, participants include J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.
CoinDesk contacted Morgan Stanley seeking further details about its participation but had not received a response at the time of publication.
