The U.S. Securities and Exchange Commission (SEC) has granted a no-action letter to The Depository Trust & Clearing Corporation (DTCC) subsidiary DTC, authorizing the tokenization of certain custodied assets on approved blockchains. Announced on December 11, 2025, this historic milestone marks the first time a systemically important market infrastructure has received regulatory clearance to offer blockchain-based securities representation directly within its core post-trade framework.
Details of the SEC Approval and DTC's Tokenization Service
DTCC announced via social media platform X: “In an historic milestone, DTC received a no‑action letter from the SEC to tokenize certain DTC‑custodied assets. By leveraging blockchain, DTCC aims to bridge TradFi and DeFi, advancing a more resilient, inclusive and efficient global financial system.” The no-action letter authorizes DTC to offer a tokenization service for DTC participants and their clients on pre-approved blockchains for three years. Under the letter, DTC can tokenize real-world assets, with the digital version having all the same entitlements, investor protections and ownership rights as the traditional form. Additionally, DTC will provide the same high level of resiliency, safety and soundness as that of traditional markets.
Asset Scope and Strategic Implications
The assets eligible for tokenization include Russell 1000 stocks, major index-tracking ETFs, and U.S. Treasury securities — all highly liquid instruments that form the backbone of U.S. capital markets. Frank La Salla, President and CEO of DTCC, commented: “Tokenizing the U.S. securities market has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access and programmable assets, but this will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era.” DTCC Managing Director Brian Steele emphasized that the initiative shows innovation can scale without compromising the resilience that underpins U.S. markets. Meanwhile, Nadine Chakar, managing director and head of digital assets at DTCC, said distributed ledger technology enables programmability and mobility while maintaining trust.
Industry Impact and Rollout Timeline
The approval is widely regarded as a landmark because it embeds tokenization within systemically important market infrastructure rather than positioning it as an experimental overlay. By explicitly preserving legal certainty, custody standards, and investor protections, the framework addresses core concerns that have limited institutional participation in digital asset markets. DTC plans a controlled rollout in the second half of 2026, initially with limited participants. This decision positions tokenization as a structural evolution of capital markets infrastructure. As regulatory clarity reaches systemically important institutions, the move is expected to accelerate institutional adoption and reinforce the case for tokenized assets as a mainstream component of global finance.
FAQ
- What did the SEC approve for DTCC and DTC? The SEC issued a no-action letter allowing DTC to offer a tokenization service for DTC-custodied assets on approved blockchains.
- Which assets can be tokenized under the DTC framework? Highly liquid assets such as U.S. Treasury securities, Russell 1000 stocks, and major index-tracking ETFs are included.
- Why is the DTCC tokenization approval significant? It embeds tokenization within systemically important market infrastructure while preserving investor protections and legal certainty.
- When will DTC roll out its tokenization service? DTC plans a controlled rollout of the tokenization service in the second half of 2026.