Grayscale’s Zach Pandl: DTCC to Launch Tokenized Securities Pilot on Canton Network, Outlines Three-Stage Tokenization Evolution

A tokenization pilot by the Depository Trust & Clearing Corporation (DTCC) on the Canton Network is expected to be a key next step in bringing tokenized equities and other assets into regulated financial-market infrastructure, according to Grayscale research head Zach Pandl. Speaking via ChainCatcher, Pandl said the DTCC pilot reflects an “entitlement model” approach, where existing eligible securities are recorded or mapped on-chain through regulated post-trade systems rather than issuing a new version of the security.

Pandl outlined three tokenization models he expects to develop in stages and likely coexist for years. The first is a third-party “wrapper model,” where an issuer holds shares via a special purpose vehicle (SPV) and tokens represent claims on that SPV. He noted that more than 70% of tokenized equities by market capitalization currently use this structure, which does not represent direct stock ownership but can be used in decentralized finance and may appeal to retail investors. These assets trade on networks including Ethereum, Solana, and BNB Chain.

The second stage is the entitlement model, represented by DTCC’s pilot, with Canton Network serving as the first blockchain network for the initiative. The third stage is an issuer-led model in which companies natively issue securities on-chain. Pandl cited Securitize as the first public company to tokenize its common stock when listing on the New York Stock Exchange last week, while adding that broader adoption would require additional regulatory clarity.

Pandl said networks most likely to benefit from growth in tokenized equities include Ethereum, Solana, BNB Chain, Avalanche, and Canton Network.