DTCC calls each token a “digital twin.” The process has three parts:
- A Treasury held at DTC, DTCC’s depository arm, is converted into a token.
- The token is delivered to the wallet a DTC participant chooses.
- The holder can convert it back to traditional form.
DTCC says the tokens keep the same investor protections, entitlements, and ownership rights as the original securities.
Why Do Institutions Want Bonds On Canton Network?
Canton is a public layer-1 blockchain built for regulated finance. Three features matter most for bond markets.
Privacy By Design
Each participant sees only the parts of a transaction that involve it. Canton calls this sub-transaction privacy. A bank trading Treasuries does not reveal its positions to competitors.
Settlement In One Step
Delivery versus payment (DVP) means the bond and the cash move together or not at all. Neither side can pay and receive nothing.
Faster Collateral
Treasuries are common collateral in repo, a short-term loan secured by bonds. Tokenized bonds can be pledged and released on the ledger directly.
What Has Happened On Canton Network In 2026?
Four events show how this works in practice.
January: Lloyds Bank issued tokenized deposits on Canton and used them to buy a tokenized UK gilt from Archax.
- July 1: Franklin Templeton transferred a tokenized U.S. Treasury to Virtu Financial for USDCx, a tokenized dollar, in a trade executed on Tradeweb.
- July 15: DTCC processed production trades with tokenized assets, including a Treasury and repo DVP trade. More than 30 firms took part.
- October: DTCC has scheduled the full launch of its Tokenization Service for this month. It covers Russell 1000 stocks, major index ETFs, and U.S. Treasury bills, notes, and bonds, on Canton and LFDT Besu.
CC pays network fees and rewards operators.
Conclusion
Putting government bonds on Canton Network gives institutions a tokenized copy of a bond they already hold. The token keeps the same legal rights, hides trade details from outsiders, and settles against cash in one step. The network has handled tokenized U.S. Treasuries and a UK gilt in live transactions, with Chainlink supplying data.
- DTCC press release: DTCC Turns Tokenization into Reality: U.S. Trades Successfully Processed Using DTC-Tokenized Assets
- DTCC press release: DTCC Advances Development of New Tokenization Service, Convenes 50+ Firms
- Lloyds Banking Group press release: Lloyds and Archax complete UK’s first public blockchain transaction using Tokenised Deposits
- Tradeweb on Business Wire: Tradeweb Facilitates Landmark On-Chain U.S. Treasuries Transaction on the Canton Network
- Report by Forkast via Yahoo Finance: The Plumbing Goes On-Chain: DTCC’s October Tokenization Launch
- Report by CryptoTicker: DTCC Tokenization Goes Live on Canton in October
- Chainlink and Canton Network on PR Newswire: Chainlink Now Live on Canton
- Canton Network press release: Canton Network and Chainlink Enter Into Strategic Partnership
- Report by Disruption Banking: What a Canton Network Super Validator Does, and Why Shinhan Wants the Role
- CoinGecko: Canton (CC) price and market data
