Most investors never think about what happens after they click “buy.” A trade still has to be recorded, settled and safeguarded, and much of that work in U.S. markets runs through the Deposit
Most investors never think about what happens after they click “buy.”
A trade still has to be recorded, settled and safeguarded, and much of that work in U.S. markets runs through the Depository Trust & Clearing Corporation, or DTCC.
DTCC is the post-trade backbone of the financial system, meaning it handles the steps after a trade is placed.
That system is now opening up to blockchain tokens, and Ondo Finance is part of the rollout.
Related: Ondo becomes the first tokenization company on DTCC's Fund/SERV
The Depository Trust Company (DTC), a DTCC subsidiary, has launched the DTCC Tokenization Service, or DTS.
The service links tokenized securities, meaning digital versions of traditional assets recorded on a blockchain, to DTC’s existing market infrastructure.
Ondo, which issues tokenized versions of stocks and Treasuries, is one of the service’s ecosystem collaborators. Broadridge, DRW and Fireblocks are among the others.
Through DTS, DTC’s participants can switch eligible securities between their traditional form and a tokenized one.
DTC’s participants are the banks and brokers that hold accounts with it.
According to Ondo, the tokenized versions keep the same ownership rights and protections as their traditional counterparts.
For investors, that addresses one of tokenization’s biggest open questions: whether a token really carries the legal weight of the asset behind it.
Ondo’s part in the launch has been building since spring.
In May, the company joined DTC’s Digital Assets Solutions Industry Working Group, which gave feedback on the service as it was being developed.
In July, Ondo announced two tokens backed by DTC tokenized entitlements: CRCLon, tied to Circle stock, and SPYon, tied to the SPDR S&P 500 ETF.
They were the first Ondo Stocks to use that structure. The entitlements serve as digital twins of the securities underlying each token.
Ondo was also the first tokenization company to join DTCC’s Fund/SERV, a system that handles most U.S. mutual fund transactions.
Ondo says it plans to keep working with DTCC. Having a seat at the table this early puts the company close to the center of how Wall Street’s existing plumbing adapts to tokens.
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Related: Ondo’s tokenized portfolios hit $20 million in first month
