DTCC to Launch Tokenized Securities on Stellar in 2027
In brief
- DTCC to offer tokenized assets on Stellar starting H1 2027, overseeing $114 trillion in global financial assets
- Stellar's compliance tools enable KYC checks, asset freezes, clawbacks, and privacy controls for regulated issuers
- Franklin Templeton's BENJI fund demonstrated tokenized securities can scale for institutional investors on Stellar
Building compliance into the blockchain
The partnership has roots in DTCC's 2023 acquisition of Securrency, an institutional tokenization platform that became DTCC Digital Assets. That team worked closely with Stellar developers to embed features directly into the network that regulated institutions need.
Securrency built clawback functionality, compliance controls and transfer restrictions into Stellar's architecture. Asset issuers can now decide whether transfers require KYC checks, whether assets can be frozen or clawed back, and what transaction information remains visible.
"The base layer is always going to be open. Then the institution gets to decide how compliance and privacy come into play," Denelle Dixon, Stellar Development Foundation CEO, said in an interview.
A market that's already moving
Institutions are already using Stellar for tokenized assets. Franklin Templeton selected Stellar for its onchain money market fund BENJI, which the asset manager began exploring in 2019 and launched in 2021. BENJI became an early proof of concept for regulated tokenized funds.
The tokenized Treasury market has since grown to roughly $15 billion, with BlackRock, JPMorgan, and Fidelity participating. Market projections underscore the scale ahead: Standard Chartered projected $2 trillion in tokenized assets by 2028, while BCG and Ripple forecasted an $18.9 trillion tokenized asset market size by 2033.
DTCC's move signals that Wall Street's infrastructure layer is ready to settle securities on public blockchains—but only those that let institutions maintain control over who can trade, how assets behave, and what data gets recorded.
Frequently asked questions
Why did DTCC choose Stellar for tokenized assets?
Stellar's architecture lets regulated issuers add compliance controls, KYC checks, asset freezes, and clawbacks on top of an open network. DTCC acquired Securrency in 2023, and that team worked with Stellar developers to build these institutional features directly into the blockchain.
What is tokenization and why does Wall Street care?
Tokenization converts traditional securities into digital tokens on blockchains, enabling faster settlement and programmable controls. Market projections show $2 trillion in tokenized assets by 2028 and $18.9 trillion by 2033, with institutions like Franklin Templeton and BlackRock already participating.
