TL;DR
- SEC Approval: DTC secured a No-Action Letter from the SEC, granting a three-year window to tokenize U.S. securities starting in 2026.
- Market Benefits: Depository leaders highlight tokenization’s potential to enhance collateral mobility, enable 24/7 trading access, and introduce programmable assets.
- Tech Backbone: DTCC’s ComposerX suite will power integration across TradFi and DeFi, creating a unified liquidity pool.
The Depository Trust & Clearing Corporation (DTCC) has secured a pivotal regulatory nod to advance tokenization in U.S. financial markets. Its subsidiary, The Depository Trust Company (DTC), received a No-Action Letter from the Securities and Exchange Commission (SEC), authorizing a controlled rollout of tokenized, DTC-custodied assets beginning in the second half of 2026.
SEC Authorization and Scope
The SEC’s No-Action Letter grants DTC a three-year window to tokenize highly liquid assets, including the Russell 1000, ETFs tracking major indices, and U.S. Treasury bills, bonds, and notes. These digital versions will carry identical entitlements, protections, and ownership rights as their traditional counterparts. The authorization is designed to accelerate adoption by allowing DTC to launch under defined limitations without lengthy regulatory delays.
Industry Leaders on Tokenization
The Depository President & CEO Frank La Salla emphasized the transformational potential of tokenizing U.S. securities, citing benefits such as collateral mobility, new trading modalities, 24/7 access, and programmable assets. He stressed that robust market infrastructure is essential to usher in this digital era. Brian Steele, DTCC’s President of Clearing & Securities Services, reinforced the initiative’s focus on uncompromising security, legal soundness, and interoperability, ensuring tokenized assets mirror the resilience of traditional markets.
Technology and Market Integration
The tokenization service will be underpinned by DTCC’s ComposerX suite, enabling liquidity across both TradFi and DeFi ecosystems. Nadine Chakar, DTCC’s Head of Digital Assets, highlighted distributed ledger technology’s ability to reshape markets, with DTCC championing interoperability and inclusivity. The initiative builds on nearly a decade of DLT exploration, positioning DTCC to deliver a cost-effective and efficient financial system.
Next Steps and Market Impact
DTC will provide onboarding details in the coming months, including wallet registration and approval processes for L1 and L2 networks. By creating a single pool of liquidity, DTCC aims to advance a secure, transparent, and resilient digital asset ecosystem. The SEC’s authorization marks a critical enabler for DTCC’s broader strategy to redefine financial markets through blockchain-powered innovation.
