Morgan Stanley moves to tokenization

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The fact is now undeniable, tokenization is preparing to revolutionize traditional finance by making it possible to issue real-world assets (RWA) in digital versions directly on the blockchain, with the associated possibility of being able to transfer them in real time, 24 hours a day, seven days a week.

A reality with which the Depository Trust & Clearing Corporation (DTCC), whose activity consists of providing clearing, settlement and custody operations for American securities, very clearly wishes to be associated with, with the recent launch of its DTCC Tokenization Service (DTS) on October 28.

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Enough to allow certain financial giants like Morgan Stanley to also embark on the adventure, benefiting from the strike force of the Depository Trust Company (DTC) subsidiary of the DTCC, which currently manages the custody of more than 114,000 billion dollars of financial securities.

We are excited to announce that Morgan Stanley is among the first banks to tokenize real-world assets, following the launch of DTCC's Tokenization Service (DTS), which converts US stocks and US Treasuries into tokenized form. Launched on October 28, DTS creates tokenized representations of securities held by DTC to promote greater liquidity, collateral mobility and capital efficiency.

In fact, Morgan Stanley appears in the list of 20 financial institutions which had signed a prior agreement to access this tokenization service, alongside JPMorgan, Citi, Bank of America, UBS, Barclays, State Street, but also the French BNP Paribas and the brokers Alpaca and Citadel Securities.

The goal? Participate in a tokenization strategy now established within the central infrastructure of Wall Street, with tokenized securities which guarantee the maintenance of property rights, investor protections and economic rights of their traditional equivalents.

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Real-world experience integrating tokenized securities with existing market infrastructures will guide the continued development of the bank's digital asset capabilities as the market evolves.

In fact, this DTCC tokenization service remains for the moment within a fairly restricted scope, since it mainly concerns Russell 1000 stocks, on major indices and tokenized Treasury bills.

Machine-translated from French