The U.S. Securities and Exchange Commission (SEC) has granted key approval to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), marking an importantThe U.S. Securities and Exchange Commission (SEC) has granted key approval to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), marking an important

SEC Approves DTCC Tokenization Service Enabling DTCC’s New Tokenization Platform

3 min read
  • The SEC approved DTC, a DTCC subsidiary, to tokenize U.S. securities on authorized blockchains.
  • The tokenization service is scheduled to begin in the second half of 2026, offering 24/7 access and programmable assets.
  • The regulator’s no-action letter allows DTC to operate the service for three years without enforcement action.

The U.S. Securities and Exchange Commission (SEC) has granted key approval to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), marking an important step toward integrating blockchain into traditional financial markets.

The SEC announced in a recent no-action letter that it will not take enforcement action against the Depository Trust Company (DTC), a key DTCC subsidiary, if it moves forward with its plan to tokenize certain assets. This approval allows DTC to operate a controlled tokenization service for U.S. securities.

SEC Supports DTCC Blockchain Initiative

DTCC announced on Thursday that its subsidiary, DTC, has received approval to launch a new service that will convert “highly liquid assets” into digital tokens on authorized blockchains.

https://twitter.com/The_DTCC/status/1999237641766674796

The first stage of the project will include prominent market instruments, which include the Russell 1000 Index, Exchange-Traded Funds tracking the most prominent U.S. market indices, U.S. Treasury Bills, and government bonds/notes.

Its implementation will commence in the second half of 2026, setting the stage for one of the largest experiments on Wall Street involving blockchain.

DTCC, which manages clearing, settlement, and infrastructure operations on the U.S. securities market, welcomed the approval as it continues its efforts toward modernizing financial infrastructure.

“I would like to thank the SEC for placing its trust in us,” commented DTCC President Frank La Salla. “Tokenizing the U.S. securities market could enable significant benefits, including more efficient cross-border movement of collateral, alternative ways of trading, 24/7 access, and programmable assets that can be updated automatically.”

SEC Approves DTC Three-Year Tokenization

As per the statement made, the no-action letter issued by the regulator enables DTC to provide a tokenization service for three years among its participants and their clients. The service will be conducted within pre-approved blockchains.

DTC assured that these digital forms of traditional assets will have the same rights and ownership information as that of the original form, be it physical or existing electronically. In essence, no rights will be sacrificed by holding these assets as tokens.

Also Read | Coinbase Enables Trading of All Solana Tokens Instantly 

SEC Embraces Blockchain Market Innovation

No-action letters remain a rarity, particularly for virtual assets. Nevertheless, it seems that the SEC, headed by Paul Atkins, who once had connections with crypto think tanks, has become more welcoming towards blockchain technologies.

During the recent months, no-action letters have been issued by the agency on two DePIN projects. These no-action letters have introduced a clearer approach regarding blockchain businesses operating within U.S. regulations.

image.pngSource: SEC

At the end of September, the agency also permitted investment advisers to make use of state-chartered trust companies for storing cryptocurrencies.

The approval from DTCC might turn out to be one of the most significant breakthroughs yet in efforts to integrate Wall Street markets with blockchain technology. Once achieved, it will help bring about quicker settlements, lower operational expenses, and an open market system among global investors.

As the first phase is anticipated for 2026, it appears that the DTCC’s project on tokenization may define a new market structure for the next generation markets.

Also Read | Pi Network Faces New Lawsuit Over Alleged Token Losses and Migration Issues

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