U.S. SEC Indirectly Approves Tokenized Stocks

The U.S. Securities and Exchange Commission has effectively signaled that certain equities and other financial instruments may be issued and traded in tokenized form on blockchain networks.

The Depository Trust & Clearing Corporation announced that its subsidiary, the Depository Trust Company, obtained a regulatory no-action assurance permitting it to provide tokenization services on approved blockchains for a period of three years.

Tokenization converts shares, bonds, and other real-world assets into digital representations recorded on blockchains. This approach is designed to streamline market processes, improve operational efficiency, and shorten settlement times.

Major institutions from the traditional financial sector have already explored this model, highlighting the growing institutional interest in integrating blockchain technology into established financial infrastructure.

The authorization covers securities included in the Russell 1000 index, exchange-traded funds linked to leading market benchmarks, and U.S. government debt instruments. The service is scheduled to begin phased deployment during the first half of 2026.

A no-action letter indicates that the regulator does not intend to pursue enforcement measures related to the described activity under current conditions.

Sources:

• U.S. SEC Gives Implicit Nod for Tokenized Stocks