Morgan Stanley Says It Is One of the First Banks to Embrace RWA Tokenization

Morgan Stanley has entered the growing race to bring traditional financial assets onto blockchain networks, identifying itself as one of the earliest banks participating in a new Wall Street tokenization initiative covering U.S. stocks and Treasury securities.

The bank announced its involvement through X, confirming that its tokenization activities followed the October 28 debut of the Depository Trust & Clearing Corporation’s (DTCC) Tokenization Service (DTS). DTCC oversees the clearing and settlement of most securities transactions across the U.S. financial markets.

Amy Oldenburg, Morgan Stanley’s head of digital assets strategy, said participation in the initiative would give the bank valuable practical experience to guide its future digital asset development.

She emphasized that integrating blockchain-based securities with existing financial market infrastructure would help the firm strengthen its capabilities and adapt as the tokenization market evolves.

Tokenization transforms conventional financial assets into digital representations recorded on blockchain networks. The process can enable investors to transfer tokenized securities through digital wallets and potentially access transactions beyond traditional market hours.

Through DTS, DTCC’s Depository Trust Company (DTC) issues tokens representing securities already held within its custody system. The organization says these digital versions maintain the same ownership rights and investor protections as the underlying assets. Investors can also exchange between traditional and tokenized forms or transfer tokens to their own digital wallets.

DTCC expects the platform to improve liquidity, simplify collateral management and increase capital efficiency across financial markets.

The service currently operates on two blockchain networks, Canton and DTCC’s private Besu infrastructure. The company intends to expand blockchain support with additional integrations planned for 2027.

The Securities and Exchange Commission granted regulatory clearance through a no-action letter in December 2025. The initial rollout covers Russell 1000 stocks, exchange-traded funds tracking major indexes and U.S. Treasury securities.

Approximately 20 financial institutions have joined the initiative, including Morgan Stanley, J.P. Morgan, Citi, Bank of America, Fidelity and Citadel Securities.

CoinDesk reached out to Morgan Stanley for further clarification about its participation but had not received a response before publication.