DTCC launches a trial run with Wall Street firms to convert assets into digital tokens. The Depository Trust & Clearing Corp., a leading trade processor, plans to convert a batch of shares and Treasurys into digital tokens, the clearinghouse’s latest step toward a fully organism. Almost 40 financial firms and tech providers, from JPMorgan Chase and Goldman Sachs to BlackRock, Vanguard and the New York Stock Exchange, will take part in a trial run to tokenize securities that Wall Street firms keep at DTCC.

The tokens will be stored at the clearinghouse on the blockchain, the digital ledger technology that underpins cryptocurrencies and other digital assets, and made available for trade, DTCC said. The assets set to tokenize in Wednesday’s process include shares of Microsoft, Circle Internet Group, Invesco QQQ Trust, State Street SPDR S&P 500 ETF Trust and iShares 0‑3 Month Treasury Bond ETF, as well as Treasurys of different tenors.

DTCC plans to launch its tokenization program formally in October, when firms that keep assets at the clearinghouse will be able to convert some of their securities into tokens. On Wednesday, participating firms will test the process by instructing DTCC to settle specific transactions on the blockchain. For example, JPMorgan will tokenize a portion of its Invesco QQQ Trust holdings held at DTCC, while retaining the ability to convert them back to traditional shares.

The path to a tokenized Wall Street has cleared in recent months, with many firms now racing to launch their own platforms, funds and deposit networks that move or store tokens. There are two ways companies are typically putting stocks on the blockchain.