DTCC announces tokenization of U.S. Treasury bonds! Canton surges 27% in a week, outperforming Bitcoin

The Depository Trust & Clearing Corporation (DTCC) announced that it will tokenize a portion of its US Treasury bonds on the Canton Network, sparking a strong market reaction. According to CoinGecko data, Canton Coin has risen approximately 27% over the past week, significantly outperforming the overall crypto market, while Bitcoin and Ethereum both declined about 0.5% during the same period.

Why Did DTCC Choose Canton? The Unique Advantages of an Institutional-Grade Blockchain

DTCC’s choice of the Canton Network was not accidental but a strategic decision made after careful evaluation. Canton Network is a hybrid permissioned/non-permissioned blockchain designed for regulated financial institutions to issue and settle tokenized real-world assets. This hybrid architecture maintains the transparency and efficiency advantages of blockchain while meeting the strict compliance and privacy requirements of traditional financial institutions.

Canton Coin is the native token of the network, used to support transactions and core network operations. When an institution of DTCC’s scale announces tokenization on the platform, it signifies that the platform’s technology reliability and regulatory compliance have passed the most rigorous scrutiny. DTCC CEO Frank La Salla stated: “This collaboration charts a roadmap for bringing high-value real-world tokenization use cases to market, starting with US Treasuries and ultimately expanding to various assets qualified by DTC.”

This statement reveals DTCC’s long-term strategy: US Treasuries are just the first step, with future expansion likely to include corporate bonds, stocks, real estate investment trusts (REITs), and other assets qualified by DTC. Canton’s technical architecture can support this gradual expansion, which is a key factor in its selection. Unlike other public chains, Canton Network’s permission layer ensures that only verified institutions can participate in critical operations, greatly reducing regulatory risks.

Market reactions to this news have been swift and strong. Amid a generally flat or declining crypto market, a 27% weekly increase in Canton Coin stands out. This counter-market rally demonstrates investors’ strong confidence in institutional-grade RWA tokenization platforms and reflects a market shift from purely speculative tokens toward infrastructure tokens with real use cases.

$3.7 Trillion Giant’s Historic Significance

DTCC is not an ordinary financial institution but a core pillar of the US financial market infrastructure. Its subsidiary processed approximately $3.7 trillion in securities transactions last year, accounting for about 15% of US GDP. When such a large institution decides to bring assets on-chain, it signifies far more than a single corporate decision; it marks an official recognition of blockchain technology by the entire traditional financial system.

Tokenizing real-world assets offers multiple benefits. First, it expands global access; traditional US Treasuries typically require broker accounts and complex procedures, whereas tokenization allows investors worldwide to participate more easily. Second, it reduces transaction costs; blockchain’s peer-to-peer mechanisms can cut out intermediaries and lower fees. Third, it shortens settlement times; traditional securities settlement often takes T+2 or longer, while blockchain can enable real-time or near-real-time settlement. Lastly, assets can be traded 24/7 without being limited by traditional market hours.

Three Strategic Significance of DTCC’s Tokenization Plan

Verifying the Feasibility of an Institutional-Grade Blockchain: The choice of a $3.7 trillion institution to go on-chain proves the technology meets institutional standards.

Establishing Industry Standards: DTCC’s decision could influence other financial institutions’ technological roadmaps.

Opening a New Era of Asset Tokenization: From government bonds to various assets qualified by DTC, the market potential is enormous.

Crypto payment company MoonPay President Keith Grossman recently stated that bringing traditional assets onto the chain will force traditional financial institutions to adapt, much like digital transformation reshaped the media industry. This analogy aptly describes the current paradigm shift. Twenty years ago, traditional media resisted digitization but was eventually forced to adapt or be eliminated. Today, financial institutions face a similar choice: proactively embrace tokenization or fall behind in competition.

Explosive Growth in the RWA Tokenization Market

(Source: RWA.xyz)

DTCC’s decision is not an isolated event but part of the explosive growth of the entire RWA tokenization market. According to RWA.xyz data, the total market value of tokenized real-world assets has more than doubled over the past year, growing from approximately $5.6 billion at the end of 2024 to about $19 billion today. This growth rate far exceeds most traditional financial products, indicating strong market demand.

(Source: RWA.xyz)

A large portion of this growth is driven by US Treasury products, with about $9 billion worth of Treasuries tokenized, up from approximately $3.9 billion at the start of the year. The largest of these is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which offers on-chain short-term US Treasury exposure and accrues interest daily. According to RWA.xyz, the fund’s assets have grown to nearly $1.7 billion.

Data from RWA.xyz shows other major tokenized treasury funds, including Ondo Finance and Franklin Templeton, holding approximately $830 million and $798 million respectively. These figures demonstrate that tokenized Treasuries are no longer in the concept validation stage but have entered actual scaled application. DTCC’s involvement will further accelerate this trend, as its large customer base and market influence can bring broader acceptance to tokenized Treasuries.

Can Canton Become the Industry Standard for Institutional RWA Tokenization?

DTCC’s choice provides Canton with an opportunity to become an industry standard, but this also depends on whether the platform can continue to deliver stable, secure, and compliant services. Currently, Canton’s 27% weekly increase is impressive, but the market still needs to observe whether it can sustain long-term growth momentum. If DTCC’s pilot succeeds and gradually expands to more asset classes, Canton’s network effects will strengthen, attracting more institutions to choose the platform for tokenization operations.