Morgan Stanley has begun converting US stocks and Treasuries into blockchain tokens, and the bank claims it moved ahead of most of Wall Street to do it.
In a post on X, the bank said it is among the first banks using the Depository Trust & Clearing Corporation’s Tokenization Service, known as DTS. Morgan Stanley said its tokenizing began after the service went live on Oct. 28.
The post didn’t include volumes, a list of assets or any dollar amounts. Morgan Stanley had not answered a request for comment when this story went to publication.
Why DTCC’s role is significant
Most US stock and bond trades are cleared and settled by DTCC. Should tokenized securities break into mainstream finance, its infrastructure is the most likely route they would take.
With DTS, DTCC’s Depository Trust Company mints tokens representing securities it already holds. According to DTCC, the tokens come with the same ownership rights and investor protections as the original securities. Holders can switch between the two forms and transfer tokens to their own digital wallets.
A tokenized security is a digital copy of an asset that can trade freely on a blockchain 24/7, and that round-the-clock access is the big draw. Traditional markets shut down overnight. Blockchains keep running.
What Morgan Stanley expects to gain
Amy Oldenburg, who heads digital assets strategy at Morgan Stanley, described the effort as groundwork for the bank’s future plans.
“The hands-on experience of integrating tokenized securities with established market infrastructure will inform the continued development of the firm’s digital asset capabilities as the market evolves,” Oldenburg said.
No product is named in that statement. Taken at face value, it says the bank is still learning.
Twenty firms, two blockchains and a 2027 roadmap
Morgan Stanley isn’t alone. So far, twenty firms have joined DTS, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities among them. Getting in early here makes the bank one name on a long list.
DTCC argues that tokenization can boost liquidity, simplify moving collateral and help firms put capital to more efficient use. DTS operates on two blockchains, Canton and DTCC’s private Besu network, with additional chains planned for 2027.
The Securities and Exchange Commission approved the project through a no-action letter in December 2025. Russell 1000 stocks, exchange-traded funds tracking major indexes, and Treasuries are the eligible assets.