Morgan Stanley says it is among the first banks to tokenize real world assets

Morgan Stanley says it is among the first banks to use a new Wall Street tokenization system, turning US stocks and Treasuries into digital versions that trade on a blockchain.

The bank said in a post on X that it began tokenization after the launch of the Depository Trust & Clearing Corporation’s Tokenization Service, or DTS. DTCC is the company that clears and settles most US stock and bond trades. The service went live Oct. 28.

Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said the experience will shape what the bank builds next.

“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.

Tokenizing means creating a digital version of a security that can be freely traded on the blockchain 24/7.

Under DTS, DTCC’s Depository Trust Company mints tokens that represent securities it already holds. DTCC says the tokens keep the same ownership rights and investor protections as the originals. Users can swap between the two forms and send tokens to their own digital wallets.

DTCC says tokenization can improve liquidity, make collateral easier to move and use capital more efficiently. The service runs on two blockchains, Canton and DTCC’s private Besu network, with more planned for 2027. The Securities and Exchange Commission cleared the project in a December 2025 no-action letter. It covers Russell 1000 stocks, exchange-traded funds that track major indexes and Treasuries.

Twenty firms have signed up so far, including Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.

CoinDesk reached out to Morgan Stanley for comment and did not receive response at the time of writing.