Citadel Transfers Tokenized U.S. Treasuries in DTC Production Test

Citadel Securities transferred tokenized U.S. Treasury entitlements through The Depository Trust Company’s (DTC) Tokenization Service on July 15, 2026, testing blockchain-based collateral movement within traditional market infrastructure.

Citadel created digital representations of Treasury securities on the Canton Network and held the entitlements in Fireblocks wallets. The assets were then transferred to DTC-registered wallets associated with BNP Paribas and Société Générale before being posted as collateral at CME. The size of the position was not disclosed.

The transaction was part of a DTC production event involving more than 30 firms. The participants tested several workflows, including collateral pledges, securities lending, Treasury repo and delivery-versus-payment transactions.

DTC, a subsidiary of The Depository Trust & Clearing Corporation (DTCC), expects to make its voluntary Tokenization Service available in the fourth quarter of 2026. The initial eligible assets are selected U.S. Treasury bills, notes and bonds, equities and exchange-traded funds.

The service is designed to create blockchain-based representations of securities held at DTC while preserving the underlying assets’ legal rights, economic interests and investor protections. DTC said the service is authorized under a Securities and Exchange Commission no-action letter issued in December 2025.

The test used DTC’s market infrastructure alongside the Canton Network and registered digital wallets. That structure is intended to support transfers beyond conventional settlement schedules while keeping the underlying securities within established custody and market arrangements.

“Fireblocks delivered for us. We greatly valued their partnership and dedication in preparing for the tokenization event to make July 15th work smoothly,” Dan Doherty of Citadel Securities said.

DTC’s next step is the planned fourth-quarter launch of the Tokenization Service, which will determine how participants use tokenized securities in collateral, repo and other settlement workflows.