Regulatory green light positions DTCC to tokenize major U.S. market assets beginning in 2026.
The U.S. Securities and Exchange Commission has granted a no-action letter to the Depository Trust and Clearing Corporation (DTCC clearing the way for a new securities tokenization service aimed at modernizing U.S. market infrastructure. The approval allows DTCC’s subsidiary the Depository Trust Company, to begin tokenizing real-world, DTC-custodied assets in a controlled production environment.
Under the plan, the DTC will tokenize a select group of high-liquidity assets, including the Russell 1000 index, major index-tracking ETFs, and U.S. Treasury bills, notes and bonds, with a rollout slated for the second half of 2026. The initiative marks one of the most significant steps yet toward integrating blockchain technology into traditional financial markets.
DTCC leadership emphasized the potential for collateral mobility, 24/7 access and new trading models through on chain representations of securities. The tokenized versions will maintain identical ownership rights, investor protections and entitlements as their traditional forms, ensuring regulatory continuity.
The SEC’s decision offers clarity in an area long marked by uncertainty. The agency, which rarely issues no-action letters, has increasingly outlined how blockchain-based financial products fit within existing rules. In recent months, the SEC has issued similar letters to select infrastructure and custody-related crypto projects, signaling a cautious shift toward broader digital-asset adoption.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.