- DTC receives SEC No-Action Letter allowing a controlled tokenization service planned for 2026 rollout.
- The program tokenizes select securities on approved networks while maintaining existing investor protections.
- Regulatory momentum grows as global tokenization projects expand across major asset classes and regions.
The Depository Trust & Clearing Corporation said its subsidiary, the Depository Trust Company, has received a No-Action Letter from the U.S. Securities and Exchange Commission. The approval authorizes a controlled tokenization service for DTC-custodied assets for a three-year period, with rollout planned for the second half of 2026.
SEC Authorizes DTC to Begin Controlled Tokenization Service
The No-Action Letter allows DTC to tokenize a defined set of traditional instruments on approved Layer 1 and Layer 2 networks. The digital versions will match the ownership rights and protections of the original securities. DTC said the service will rely on its existing risk and operational standards.
The program will cover assets such as Russell 1000 components, major index-tracking ETFs, and U.S. Treasury bills, notes, and bonds. Tokens issued through the service will operate under the same entitlements and asset-servicing rules used in current systems. The firm plans to release onboarding rules and network approvals at a later date.
DTCC noted that the authorization allows the service to launch sooner than expected. President and CEO Frank La Salla said the step will support a transition toward digital markets while keeping established investor protections in place. Brian Steele, President of Clearing and Securities Services, said the service aims to deliver digital access with strong security and long-standing resilience.
Regulatory Shift and Expanding Tokenization Activity
The approval comes during a period of increased regulatory movement on blockchain proposals. The SEC also granted approvals earlier this year for other tokenization projects tied to digital asset custody and real-world asset services. DTC’s program now stands as one of the largest tests of tokenization in a regulated U.S. environment.
DTCC has already launched blockchain-based collateral systems as part of its broader digital strategy. The firm processes trillions of dollars in securities activity each year, and it remains a central part of U.S. post-trade operations. Its move into tokenization brings digital rails closer to established market infrastructure.
Global activity around tokenized assets continues to rise as well. Recent launches include a tokenized gold fund in Singapore and new debt programs from banks in Asia, Europe, and the U.S. Market research groups expect continued growth as firms expand the use of digital formats for assets such as treasuries, commodities, and corporate securities.
