Chainlink Set for Major Boost Following DTCC’s SEC Approval for Tokenized ETFs

Depository Trust & Clearing Corporation (DTCC) received approval from the SEC to start an operation of tokenizing traditional assets. Chainlink could greatly benefit from this given that it has partnered with the organization since 2024.

DTCC Gains SEC Approval for Handling Tokenized Assets

According to a press release, the corporation announced that its subsidiary, Depository Trust Company (DTC), achieved a No-Action Letter from the U.S. SEC. The letter allowed them to operate a controlled production tokenization service for three years.

The launch will start in the second half of 2026. This will enable DTC to start delivering blockchain-based traditional securities on approved layer 1 and 2 networks.

The permission applies exclusively to a select group of very liquid assets. These assets include stocks on the Russell 1000 list, prime index-tracking ETFs, and U.S. government debt securities like U.S. Treasury bills, bonds, and notes.

Only participants of DTC and their clients will be eligible for accessing the services within the initial stage so as to keep it closely monitored.

No-Action Letters issued by the SEC rarely happen. The latest issue, as reported by CoinGape, was seen at the end of September. The SEC decided not to take action against DoubleZero at that time. Experts say this shows a positive change in the rules for financial services that use blockchain.

How Will Chainlink Benefit From the Tokenization Plans?

The largest beneficiary from the corporation’s new mandate could be Chainlink. In 2024, the project worked with DTCC and a group of major U.S. banks to kick start plans for turning traditional funds into tokens.

The corporation completed its Smart NAV Pilot using Chainlink’s Cross-Chain Interoperability Protocol. This process made it easier to share NAV data across different blockchains after trading. The pilot served as a test run for the planned launch.

At an industry event last month, Dan Doney, the CTO of DTCC, said that working with Chainlink helps the organization to efficiently update settlement systems and modernize the market.

Interest in financial products that use blockchain technology has been growing. In fact, the monthly transaction volume reached over $1.4 billion recently.