DTCC approved to offer tokenization services for stocks, bonds, and more, accelerating the adoption of digital assets

Source: DTCC Official Website, Compiled by Jinse Finance

To promote the adoption of digital assets, the world’s leading post-trade market infrastructure for the financial services industry—the Depository Trust & Clearing Corporation (DTCC) announced that its subsidiary, the Depository Trust Company (DTC), has received a “No-Action Letter” from the U.S. Securities and Exchange Commission (SEC), granting approval to provide a new service in a controlled production environment under federal securities laws and regulations, allowing for the tokenization of real-world assets held in custody by DTC. DTC expects to launch this service in the second half of 2026.

The SEC has authorized DTC to provide a three-year tokenization service for DTC participants and their clients on pre-approved blockchains. According to the letter, DTC will be able to tokenize real-world assets, with their digital versions enjoying the same rights, investor protections, and ownership as traditional assets. In addition, DTC will offer the same high level of resilience, security, and robustness as traditional markets. 

This authorization applies to a range of specific highly liquid assets, including the Russell 1000 Index (representing the 1,000 largest U.S. publicly traded companies by market capitalization), ETFs tracking major indices, as well as government bonds, corporate bonds, and stocks. The SEC’s “No-Action Letter” is significant because it allows DTC to launch this service faster than originally planned, provided certain restrictions are met and relevant representations are made. 

“I want to thank the SEC for their trust. The tokenization of the U.S. securities market is expected to bring many transformative benefits, such as enhanced collateral liquidity, new trading models, 24/7 trading, and programmable assets. However, only with robust market infrastructure can we usher in this new digital era,” said DTCC President and CEO Frank La Salla. “We are very pleased to have this opportunity to further empower the industry, our participants, and their clients, and to drive innovation. We look forward to working with all parties in the industry to safely and reliably realize the tokenization of real-world assets, thereby advancing the future of finance for generations to come.” 

The SEC’s “No-Action Letter” is a key driver in DTCC’s broader strategy to advance a secure, transparent, and interoperable digital asset ecosystem and fully leverage the potential of blockchain technology. 

“Since its inception, DTCC has been committed to pioneering breakthrough technologies, reshaping market structure, and maintaining market integrity. Our tokenization initiative will take this further, enabling us to collaborate with industry participants to usher in the era of digital markets,” said Brian Steele, President of Clearing & Securities Services and Managing Director at DTCC. “We will work with clients and the broader market to achieve securities tokenization with uncompromising security, a sound legal foundation, and seamless interoperability—all built on the resilience that has supported traditional markets for decades.” 

To support this strategy, DTCC’s tokenization solution will enable DTC participants and their clients to leverage a comprehensive tokenization service, powered by DTCC’s ComposerX platform suite. This will allow DTC to create a unified liquidity pool across traditional finance (TradFi) and decentralized finance (DeFi) ecosystems, building a more resilient, inclusive, cost-effective, and efficient financial system. 

“Distributed Ledger Technology (DLT) has the potential to reshape markets, and DTCC is leading this transformation through innovative initiatives and bold solutions,” said Nadine Chakar, Managing Director and Head of Digital Assets at DTCC. “Our suite of DLT products will support DTCC’s tokenization services and, together with the industry, drive the development of a new digital asset ecosystem for all.” 

DTC has coordinated with participants, peers, and technology providers to explore and promote the use of DLT technology for nearly a decade, seeking ways to enable market participants to benefit from blockchain and tokenization technologies. These benefits include liquidity (the ability to transfer assets across jurisdictions and time zones regardless of standard trading hours or holidays), decentralization (market participants having more direct access to their assets), and programmability (using smart contracts to optimize asset transfers or allocations), all while enjoying the same protections and accountability mechanisms provided by DTC.  

According to SEC authorization, DTC is permitted to provide limited production environment tokenization services on L1 and L2 network providers. DTCC will provide more details in the coming months regarding onboarding requirements (including wallet registration) and the L1 and L2 network approval process.