DTCC Plans Tokenization of Stocks, ETFs, and Treasurys After SEC No-Action Letter

• DTCC’s DTC subsidiary gains approval to tokenize highly liquid assets like the Russell 1000 index and US Treasury securities.

• The no-action letter provides regulatory clarity, allowing operations on pre-approved blockchains for three years without enforcement action.

• This initiative could enable 24/7 trading, improved collateral mobility, and programmable assets, potentially transforming traditional securities markets.

DTCC tokenization SEC no-action letter unlocks blockchain for stocks and bonds. Explore benefits like 24/7 access and efficiency gains in 2026 rollout. Stay informed on crypto innovations.

What is the DTCC Tokenization SEC No-Action Letter?

DTCC tokenization SEC no-action letter refers to the regulatory approval granted by the US Securities and Exchange Commission (SEC) to the Depository Trust Company (DTC), a subsidiary of the Depository Trust and Clearing Corporation (DTCC), allowing it to launch a tokenization service for traditional securities. This letter assures that the SEC will not pursue enforcement actions if the service operates as outlined, focusing on tokenizing real-world assets on blockchain while preserving all original entitlements, protections, and rights. The move marks a significant step in integrating blockchain technology with established financial infrastructure, with the service set to begin in the second half of 2026.

What Assets Will DTC Tokenize Under This Initiative?

The DTC plans to tokenize a select group of highly liquid assets, including components of the Russell 1000 index, exchange-traded funds (ETFs) that track major market indexes, and various US Treasury securities such as bills, bonds, and notes. This controlled production environment will utilize pre-approved blockchains to create digital representations of these assets. According to DTCC’s announcement, the tokenized versions will maintain identical investor protections and ownership rights as their traditional counterparts, ensuring seamless integration into existing market systems. Experts note that this could process over $2 quadrillion in securities annually through DTCC’s infrastructure, potentially reducing settlement times and costs significantly—traditional settlements often take T+1 days, while blockchain could enable near-instantaneous transactions. DTCC CEO Frank La Salla emphasized the transformative potential, stating, “Tokenizing the US securities market has the potential to yield benefits such as collateral mobility, new trading modalities, 24/7 access, and programmable assets.” This aligns with broader industry trends, as reported by financial analysts, where tokenization is projected to unlock trillions in illiquid assets by 2030.

Frequently Asked Questions

What does the SEC no-action letter mean for DTCC’s tokenization plans?

The SEC no-action letter provides DTCC’s DTC subsidiary with permission to offer tokenization services for DTC-custodied assets on pre-approved blockchains for three years, without facing regulatory enforcement. It confirms that tokenized assets will retain all traditional rights and protections, allowing participants and clients to experiment in a production environment starting in 2026. This clarity addresses key regulatory uncertainties in the US securities market.

How will DTCC’s tokenization service impact traditional finance and blockchain integration?

DTCC’s tokenization service aims to bridge traditional finance (TradFi) and decentralized finance (DeFi) by leveraging blockchain for assets like stocks and Treasurys, enabling features such as 24/7 access and faster settlements that sound natural for voice queries. As DTCC handles clearing and settlement for most US securities, this could enhance global market resilience and efficiency, making financial systems more inclusive for participants worldwide.

Key Takeaways

• Regulatory Milestone: The SEC’s no-action letter to DTC represents a pivotal approval for blockchain-based tokenization of traditional securities, ensuring compliance and innovation coexist.
• Asset Scope: Focus on liquid assets like Russell 1000 ETFs and US Treasurys will allow testing of tokenized versions with full legal entitlements, potentially scaling to broader markets.
• Future Benefits: Expect advancements in collateral mobility and 24/7 trading; investors should monitor 2026 rollout for opportunities in programmable assets.

Conclusion

The DTCC tokenization SEC no-action letter signifies a landmark development in merging blockchain with traditional securities, enabling the DTC to tokenize key assets like stocks, ETFs, and US Treasurys by mid-2026. This initiative, supported by authoritative bodies such as the SEC and DTCC’s robust infrastructure, promises enhanced efficiency, accessibility, and innovation in global finance. As the industry evolves, stakeholders can anticipate further regulatory clarity and technological advancements that foster a more interconnected financial ecosystem—stay tuned for updates on these transformative changes.

The Depository Trust and Clearing Corporation plans to tokenize stocks, ETFs, and US Treasurys next year after receiving an SEC no-action letter.

The US Securities and Exchange Commission has given a subsidiary of the Depository Trust and Clearing Corporation (DTCC) a highly coveted “no-action” letter, allowing it to offer a new securities market tokenization service.

The DTCC said on Thursday that its subsidiary, the Depository Trust Company (DTC), was given the go-ahead to launch “a new service to tokenize real-world, DTC-custodied assets in a controlled production environment.”

The DTC will tokenize a “set of highly liquid assets” including the Russell 1000 index, exchange-traded funds tracking major indexes, US Treasury bills, bonds and notes, with the service expected to roll out in the second half of 2026.

The DTCC runs crucial market infrastructure, providing clearing, settlement and trading of US securities. The SEC no-action letter gives it an important sign-off on its plan, confirming that the agency won’t take enforcement action if its proposed product operates as described.

“I want to thank the SEC for its trust in us,” said DTCC CEO Frank La Salla. “Tokenizing the US securities market has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access and programmable assets.”

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. pic.twitter.com/E4W47rWBIc

— DTCC (@The_DTCC) December 11, 2025

SEC Clearing Up Gray Areas with No-Action Letters

The DTCC said the no-action letter allows its subsidiary “to offer a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years.”

“DTC will have the ability to tokenize real-world assets, with the digital version having all the same entitlements, investor protections and ownership rights as the asset in its traditional form,” it said. 

The SEC rarely gives no-action letters, but SEC chair Paul Atkins, a former crypto lobbyist, has warmed to the industry and has outlined how crypto products fall under his agency’s regime.

Over the past few months, the SEC has handed out two no-action letters to decentralized physical infrastructure network (DePIN) crypto projects. 

In late September, the SEC also issued a no-action letter that cleared the way for investment advisers to use state trust companies as crypto custodians.