Societe Generale stated that it has accepted $10 million in DTCC tokenized U.S. Treasury bonds as collateral on Canton Network. This transaction has incorporated these assets into the bank's existing collateral and back-office systems, but the bank's acceptance of these assets will not change the way DTC values tokenized equity in its own risk calculations.

Key points:

• The Prime Services and Clearing business departments of Societe Generale have accepted these tokenized government bonds.
• Securities held by DTC support these tokens in a 1:1 ratio.
• Token transfers can be carried out around the clock, but conversions are limited to business hours on weekdays.

Societe Generale accepts DTCC tokenized government bonds as collateral

This line indicates that the business departments identified by Prime Services and Clearing accepted these assets on Canton Network under the governance, risk, and control framework of Societe Generale. By completing this transaction, the company carried out a plan announced in May of this year, which is to accept tokenized assets as collateral on Canton.

Societe Generale stated that these securities were tokenized during the soft launch phase of the tokenization services provided by the Depository Trust and Clearing Companies ( Depository Trust & Clearing Corporation, DTCC ). The acceptance of these assets has enabled the integration of the tokenized assets with the bank's existing operational systems.

How does the tokenization service of DTCC work?

The tokenization of DTCC was launched on October 28, 2026, allowing eligible users to convert securities held in its custodian subsidiary The Depository Trust Company ( DTC ) into tokenized representations.

The service description document for DTCC indicates that these tokens are backed 1:1 by securities held by DTC, while DTC is responsible for maintaining the official ownership records. Transfers can only be made between wallets registered with DTC, and not between unrestricted cryptocurrency wallets.

On supported blockchains, peer-to-peer transfers can operate 24 hours a day, 7 days a week. The switching between tokens and traditional ledger-based securities is limited to from 2 a.m. to 6 p.m. Eastern Time during business hours, with processing times of 15 minutes or less.

Banks accept methods different from those for DTC risk management.

Societe Generale will tokenize DTCC government bonds as collateral, which will not change the internal handling of these tokens by DTC. The bank's acceptance arrangements are separate from the risk calculations of the custodian institutions.

According to the no-objection letter framework issued by the U.S. Securities and Exchange Commission (SEC) in December 2025, DTC does not assign any collateral value or settlement value to tokenized equity in its own risk calculations. Societe Generale accepts these assets within the governance and control framework of its bank, rather than by altering that framework.

Continuous collateral turnover and on-chain financing

Societe Generale stated that it plans to support continuous collateral turnover and evaluate more eligible tokenized securities. The bank also intends to explore on-chain repurchase financing, but this will require approval and compliance with regulatory requirements.

The conditions set for further financing activities include internal approval, regulatory requirements, as well as the further development of operational and control frameworks.

This article was generated with the assistance of artificial intelligence and has been reviewed by an editorial team.