DTCC approved by SEC to launch tokenized US securities service in 2026

The Depository Trust and Clearing Corporation (DTCC) announced on Thursday that its subsidiary has received a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), authorizing the tokenization of traditional financial assets.

This approval grants The Depository Trust Company (DTC) the authority to offer tokenization services for various U.S. securities, including the Russell 1000 index, exchange-traded funds (ETFs), U.S. Treasury bills, bonds, and notes. The services will be available on pre-approved blockchain networks starting in the latter half of 2026. This move could open the door for more companies to launch tokenized stock products.

DTCC plays a critical role in the post-trade infrastructure of U.S. financial markets, overseeing the clearance and settlement of securities transactions. Essentially, DTCC ensures that financial trades are completed smoothly and correctly behind the scenes.

The approval grants the DTCC the ability to operate its tokenization services for the next three years under current federal securities laws. DTCC President and CEO Frank La Salla commented, "Tokenizing U.S. securities has the potential to drive significant benefits, such as improved collateral mobility, new trading opportunities, 24/7 access, and programmable assets. However, achieving these benefits requires a solid market infrastructure to support this digital transition."

The tokenized versions of these securities will offer the same rights, protections, and entitlements as their traditional counterparts, ensuring that investors maintain full ownership and security.

For nearly ten years, the DTCC has explored distributed ledger technology to assess its potential in improving asset mobility and programmability. The authorized service will function in a limited production environment, leveraging both Layer 1 and Layer 2 blockchain providers. Further details on onboarding procedures and wallet registration will be shared in the coming months.

In a related development, U.S. regulators have taken steps to update digital asset frameworks. On Thursday, the Commodity Futures Trading Commission (CFTC) Acting Chair, Caroline D. Pham, announced the withdrawal of outdated guidance regarding the delivery of virtual currencies. This action reflects the ongoing evolution of the cryptocurrency market.

Pham stated, "Removing outdated and overly complicated regulations that hinder the crypto industry is in line with the Administrations goal to foster innovation this year." The withdrawal of this guidance will allow the CFTC to implement recommendations made by the President's Working Group on Digital Asset Markets during the previous administration.

Sources:

• DTCC receives SEC approval to launch tokenized US securities service in 2026