Why DTCC picked Stellar over Ethereum
Stellar becomes the first public blockchain in DTCC's tokenization service, joining Canton in a two-track plan to put $114T of custody on-chain by 2027.
Hey, it’s Marc,
For four decades, I’ve watched DTCC keep one record: who owns every U.S. share, bond, and Treasury. A $100 trillion ledger. None of it ever touched a public blockchain.
On May 27, that changed. DTCC chose Stellar to move DTC-custodied securities onto an open ledger by 1H 2027. In December 2025, DTCC tokenized U.S. Everyone assumed this moment would belong to Ethereum. Why DTCC went the other way is the real story. [RELEASE]
Let’s unpack.
The Signal: DTCC uses a split ecosystem strategy. While choosing Stellar as its public settlement blockchain, DTCC operates its own internal, permissioned network called DTCC AppChain, which is built using Ethereum-compatible EVM architecture (Hyperledger Besu). This allows them to use private Ethereum tech inside their walls while deploying Stellar for external public market settlement at a lower cost and built-in compliance.
👉PRO: Download the PDF below
What happened
On May 27, 2026, DTCC announced that it will integrate DTC’s tokenization service with the Stellar network, with the initial scope covering Russell 1000 equities, major index ETFs, and U.S. Treasuries. The integration supports the full asset lifecycle, including corporate actions and reporting, rather than a wrapper or representation. Tokenized assets retain the same investor protections, entitlements, and safeguards as traditionally held securities.
The Stellar deal builds on the regulatory foundation laid in December 2025, when the SEC Division of Trading and Markets issued DTC a No-Action Letter authorizing a three-year tokenization pilot. The relief covers Reg SCI, Section 19(b) of the Exchange Act, and Rules 17Ad-22(e) and 17Ad-25, the rules that govern how a clearing agency operates. DTCC plans limited production trades in July 2026, broader service launch in October, and the DTC-tokenized assets on Stellar go-live in 1H 2027.
Zooming in: Stellar wasn’t picked at random. The network already has $1.82B in tokenised RWAs and hosts Franklin Templeton’s BENJI, the first U.S.-registered tokenized money market fund, which crossed $1.98B in AUM in April 2026.
Stepping back: On May 8, 2026, the DTCC publicly advanced DTC’s native tokenization service, and announced its commercial launch in October. More than 50 firms are already in the working group that helped DTCC build this platform, including BlackRock, Goldman Sachs, J.P. Morgan, Citi, Anchorage Digital, Circle, Ondo Finance, and Payward. [Read CEO notes]
What the SEC actually waived: The No-Action Letter exempts DTC from three core obligations every other systemically important utility must meet.
