Morgan Stanley Claims Early Lead in Tokenizing Real-World Assets

Morgan Stanley has announced that it is among the first financial institutions to adopt a new Wall Street tokenization platform, allowing U.S. stocks and Treasury securities to be converted into digital assets that can be traded on blockchain networks.

The bank revealed in a post on X that it began exploring tokenized securities following the launch of the Depository Trust & Clearing Corporation’s (DTCC) Tokenization Service, known as DTS. DTCC, which handles the clearing and settlement of most U.S. stock and bond transactions, officially introduced the service on October 28.

Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said the bank’s practical experience with the system will help guide its future development plans.

Oldenburg explained that integrating blockchain-based securities with traditional financial infrastructure will provide valuable insights as the institution expands its digital asset capabilities and responds to changing market conditions.

Tokenization involves creating blockchain-based representations of traditional financial assets, allowing them to be transferred and traded digitally around the clock.

Through DTS, DTCC’s Depository Trust Company (DTC) issues digital tokens representing securities already held within its custody system. According to DTCC, these tokens retain the same ownership rights and investor protections as their traditional counterparts. Investors can also convert between tokenized and conventional securities and transfer digital tokens into their personal wallets.

DTCC expects tokenization to improve market liquidity, simplify collateral transfers and enable more efficient capital utilization. The service currently operates across two blockchain networks, Canton and DTCC’s private Besu network, with additional integrations planned for 2027.

The Securities and Exchange Commission authorized the initiative through a no-action letter issued in December 2025. Its initial coverage includes companies within the Russell 1000 index, exchange-traded funds tracking major market indexes and U.S. Treasury securities.

Around 20 financial institutions have joined the initiative so far. Participants include Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.

CoinDesk contacted Morgan Stanley for additional comments but had not received a response at the time of publication.