Morgan Stanley becomes one of the first banks to tokenize U.S. stocks and Treasuries through DTCC's tokeniza

Morgan Stanley has become one of the first banks to tokenize U.S. equities and U.S. Treasuries through the Depository Trust & Clearing Corporation's (DTCC) new Digital Token Service (DTS), which launched on October 28. The service creates tokenized representations of securities held in custody at the DTCC's Depository Trust Company, aiming to improve liquidity, collateral mobility, and capital efficiency. The move marks a significant step in bringing traditional Wall Street assets onto tokenized rails, with a major global bank participating from the outset. It follows broader industry momentum toward tokenizing real-world assets, including Treasuries and equities, as firms seek faster settlement and more efficient collateral use. What to watch next is whether other major banks join DTS and whether tokenized versions of these securities gain traction in trading and collateral markets.