DTCC’s decision to connect its upcoming tokenized securities platform to the Stellar network (XLM) is the latest step in a relationship that stretches back nearly a decade, according to Stellar Development Foundation CEO Denelle Dixon.
Earlier this week, DTCC said tokenized assets held through its Depository Trust Company could become available on Stellar from the first half of 2027.
The move carries weight because DTCC is one of Wall Street’s core market tools, overseeing more than $114 trillion in assets. The Stellar integration is designed to support the issuance, settlement and lifecycle management of tokenized securities, while opening the door to future projects involving highly liquid assets such as major indices and US Treasuries
The roots of the partnership go back to Securrency, the institutional tokenization platform DTCC acquired in 2023 and became what is now DTCC Digital Assets.
Security, Dixon told CoinDesk in an interview, worked closely with Stellar developers on features that regulated financial institutions needed to issue assets on the chain, including clawback functionality, compliance checks and transfer restrictions. These tools were later incorporated directly into the network.
“Some of the team have been working with Stellar for a long time,” Dixon said.
The news landed as tokenization has become one of the dominant themes across both crypto and traditional finance, attracting interest from global banks and asset managers looking to move traditional financial instruments onto blockchain rails.
Tokenization refers to representing assets such as US Treasury bonds, money market funds, stocks or private credit as digital tokens that can be issued, traded and settled on blockchains. Proponents argue that the technology can shorten settlement times, release security trapped in old processes and ultimately allow markets to operate around the clock.
It is potentially a huge market. Standard Chartered predicted $2 trillion in tokenized assets by 2028, while BCG and Ripple predicted a market size of $18.9 trillion by 2033.
Franklin Templeton’s early bet on Stellar
Dixon argued that tokenized assets are only the visible layer of a broader infrastructure shift.
“Blockchain is excellent for books and records,” she said. “Tokenization is the product result, but it’s all these underlying components that are really important.”
This focus on registration was one of the reasons why Franklin Templeton chose Stellar for his onchain money market fund, BENJI. Dixon said the asset manager began exploring Stellar in 2019 and later launched the fund in 2021 with the aim of placing fund records on a single shared ledger instead of relying on multiple databases.
BENJI became one of the earliest examples of a regulated tokenized fund and helped pave the way for today’s tokenized financial market, which has grown to around $15 billion with BlackRock, JPMorgan, Fidelity entering the ring.
Making public blockchains work for regulated finance
For institutions, moving assets on the chain requires more than faster settlement.
Regulated companies must comply with securities laws, sanctions requirements and investor protections, creating demand for blockchain infrastructure that can support identity checks, transfer restrictions and other compliance controls.
This need for compliance-ready infrastructure is one of the reasons why Stellar’s long-standing relationship with Securrency proved valuable, Dixon said.
Stellar’s architecture allows issuers to add compliance, identity control and privacy protection on top of an open network, she said. Asset issuers can decide whether transfers require know-your-customer (KYC) checks, whether assets can be frozen or refunded, and what transaction information remains visible.
“The base layer will always be open,” Dixon said. “Then the institution must decide how compliance and privacy come into play.”
