DTCC’s DTC Gains SEC Approval to Tokenize Assets

DTCC’s DTC receives SEC approval to tokenize real-world assets, enabling secure, efficient, and innovative digital markets.

The Depository Trust & Clearing Corporation (DTCC) announced today that its subsidiary, The Depository Trust Company (DTC), received a No-Action Letter (NAL) from the U.S. Securities and Exchange Commission (SEC), allowing it to offer a tokenization service for real-world, DTC-custodied assets. DTC plans to roll out the service in the second half of 2026.

The SEC’s No-Action Letter authorizes DTC to tokenize real-world assets for DTC Participants and their clients on pre-approved blockchains for three years. The digital tokens will carry the same entitlements, investor protections, and ownership rights as the traditional forms of the assets, while DTC maintains the same level of resiliency, safety, and soundness as conventional markets.

The authorization also covers a defined set of highly liquid assets, including the Russell 1000, exchange-traded funds tracking major indices, and U.S. Treasury bills, bonds, and notes. Moreover, the NAL expedites DTC’s launch of the tokenization service under specific limitations, avoiding delays that would have occurred under standard regulatory approval processes.

Frank La Salla, President and CEO of DTCC, emphasized the potential of tokenization. “Tokenizing the U.S. securities market can deliver transformational benefits such as collateral mobility, new trading modalities, 24/7 access, and programmable assets. This will only succeed if market infrastructure provides a robust foundation for this digital era,” he said. “We welcome the opportunity to innovate safely and securely while advancing the future of finance for generations to come.”

DTCC’s DTC Gains SEC Approval to Tokenize Assets

Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, highlighted the company’s pioneering role in market technology. “Our tokenization initiative builds on decades of market innovation and will enable seamless collaboration with industry participants. We will tokenize securities with uncompromising security, legal certainty, and interoperability, backed by the resilience that has anchored traditional markets for decades,” Steele said.

DTCC will leverage its ComposerX suite of platforms to provide a comprehensive tokenization service. The approach also aims to create a single liquidity pool across traditional finance (TradFi) and decentralized finance (DeFi) ecosystems, thereby promoting a more resilient, inclusive, cost-effective, and efficient financial system.

Nadine Chakar, Managing Director and Head of Digital Assets at DTCC, stressed the company’s commitment to innovation. “Distributed Ledger Technology has the power to reshape markets. Through our DLT offerings, we will help build a new digital asset ecosystem for all,” she said.

DTC has spent nearly a decade collaborating with Participants, peers, and technology providers to explore blockchain and tokenization. The goal: enable mobility across time zones, direct asset access, and programmable transfers using smart contracts—all while maintaining the protections and accountability that DTC provides.

Under the SEC’s No-Action Letter, DTC may operate a limited production tokenization service across L1 and L2 blockchain providers. Furthermore, DTCC will release additional details in the coming months regarding onboarding requirements, wallet registration, and approval processes for participating networks.

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