The Depository Trust & Clearing Corporation switched on its Tokenization Service (DTS) on October 28, and Morgan Stanley is among the first banks to use it, converting US equities and US Treasurys into tokenized form.

DTS creates tokenized representations of securities held in custody at DTC, the core settlement layer of the US securities market. The stated goals are greater liquidity, collateral mobility and capital efficiency for traditional instruments.

The bank is separately preparing to support tokenized equities in Q1 2027.

The move puts tokenization inside Wall Street's existing settlement plumbing rather than alongside it, a step that could pull more traditional collateral onchain as other DTC participants follow.