HashKey joins DTCC Digital Assets Working Group

HashKey Group joins DTCC Digital Assets Working Group

HashKey Group announced on September 2 that it has joined the Depository Trust and Clearing Corporation (DTCC)'s Digital Asset Advisory Services Industry Working Group, becoming the working group's first Asian digital asset service provider.

Summary

HashKey has joined the DTCC Digital Assets Working Group, becoming its first digital asset service provider in Asia.

DTCC confirmed more than 50 participants in an announcement released in May, while HashKey said there are currently more than 100 institutions.

HashKey plans to contribute Asia-Pacific regulatory experience to institutional token issuance, settlement and custody standards.

DTCC aims to launch tokenization services in October after completing production transactions with the custody securities.

HashKey has participated in a number of initiatives involving tokenization of bonds, funds, notes and settlement infrastructure in Hong Kong.

HashKey said the working group now includes more than 100 financial institutions, asset management companies and digital asset companies. Participants mentioned in the announcement include JPMorgan Chase, Goldman Sachs, Nasdaq and the New York Stock Exchange.

DTCC identified more than 50 participating institutions in an announcement issued in May. The larger numbers provided by HashKey appear to reflect the new membership of the working group since its public launch, although DTCC has not yet released an updated full membership list.

HashKey brings Hong Kong experience to DTCC

HashKey operates digital asset trading, asset management and on-chain infrastructure businesses in multiple regulated markets, covering Hong Kong, Singapore, Japan and Bermuda.

Since 2023, the company has participated in tokenization projects led by Hong Kong financial authorities. It is a member of the Hong Kong Monetary Authority's "Project Ensemble Architecture Community", which studies how tokenized deposits and wholesale central bank digital currencies support the trading of tokenized assets.

HashKey also joined the Hong Kong Tokenized Bond Expert Group. The company said it has supported the issuance and circulation of tokenized money market exchange-traded funds, bonds and structured notes.

These experiences are relevant to the DTCC Working Group, as Hong Kong has been testing institutional tokenization under a regulated framework. Previous reports have shown that Hong Kong regulators are also developing tokenized funds and settlement infrastructure aimed at connecting digital assets to the existing financial system.

HashKey said it will contribute its regulatory and operational experience in the Asia-Pacific region to discussions on global tokenization standards. Its participation does not represent regulatory approval for HashKey products, DTCC membership, or DTCC commitment to use HashKey infrastructure.

DTCC working group supports service launch in October

DTCC established an industry working group to guide the development of its tokenized services. The working group includes banks, securities firms, asset management companies, exchanges, custodians and blockchain infrastructure companies.

In an official announcement released in May, DTCC said participants would assist in reviewing product features, operating processes and market standards. The work covers how qualified securities can be transferred between traditional records and blockchain-based representations.

This service is designed to allow DTC participants to create tokenized versions of eligible securities already in custody with DTC. These representations are often referred to as "digital twins" because the underlying securities remain in regulated depository structures.

Participants will be able to transfer tokenized securities to approved wallets and convert between traditional and tokenized formats. DTCC said its model was designed to preserve ownership rights and investor protections in the underlying securities.

This working group is advisory in nature. Members may provide technical and operational feedback, but participation does not confer rights to the DTCC system nor guarantee commercial access to the final service.

Production transactions test multiple market functions

DTCC completed its first batch of tokenized transactions in a production environment in July. The test used securities held by DTC, covering equity transfers, pledge guarantees, securities lending, and bond swaps involving U.S. Treasury bonds and repurchase agreements.

Testing was conducted on DTCC's Hyperledger Besu-based private blockchain and public Canton network. Assets participating in the project reportedly include Microsoft and Circle stocks, Invesco QQQ Trust, SPDR S&P 500 ETF, and BlackRock Treasury Exchange Traded Fund.

JPMorgan Chase also completed a conversion involving shares in Invesco QQQ Trust. The transaction demonstrates how securities held in DTC can be represented through blockchain-based records without having to move the underlying assets out of the established custody system.

Related reports claim that these production tests are a step towards settlement on the tokenized securities chain. They do not constitute unlimited public launches, and participation is still limited to approved institutions and test scenarios.

DTCC plans to launch standardized tokenization services in October 2026. Initial services will include compliance and distribution controls, and subsequent releases may add automated capabilities for distribution, services and corporate actions.

DTCC connects tokenization with existing custody

DTC is the central securities depository in the United States and a systemically important financial market infrastructure. HashKey said the depository protects more than $114 trillion in assets.

This figure describes the value of securities held within DTC custody infrastructure and should not be interpreted as the value of assets that have been tokenized or are planned to be moved to the blockchain.

DTCC's approach is different from platforms that issue tokens outside of traditional escrow systems. Its planned service will keep the underlying securities in DTCs while recording approved tokenization representations in supported networks.

This structure is designed to connect blockchain-based transfers with existing ownership records, compliance controls and settlement processes. DTCC said this could allow tokenized assets to leverage existing market liquidity and investor protection, but these expected benefits will depend on final service design and institutional adoption.

As DTCC moves towards its launch in October, HashKey's next role will be to participate in discussions in the working group. Neither company disclosed separate HashKey integrated, jointly issued tokenized products or commercial agreements.