In a landmark step toward accelerating digital asset adoption across global financial markets, 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). This approval clears the way for DTC to begin offering a tokenization service for real-world assets held in its custody ushering traditional securities into a securely managed blockchain environment. The service is expected to begin rolling out in the second half of 2026.
Financial Technology Insights: Chime Promotes Three Executives to Lead Next Growth Phase
The SEC’s decision allows DTC to tokenize highly liquid, widely traded assets—such as those within the Russell 1000 index, major index-tracking ETFs, and U.S. Treasury securities—on pre-approved blockchains. These tokenized versions will carry the same rights, protections, and ownership guarantees as their traditional counterparts, ensuring that market stability and investor safeguards remain intact.
DTCC President & CEO Frank La Salla emphasized the importance of this milestone, noting its potential to transform how markets operate.
“Tokenizing the U.S. securities market has the potential to yield transformational benefits—24/7 access, new trading modalities, and greater collateral mobility. But these advancements require robust infrastructure,” La Salla said. “We appreciate the SEC’s trust and look forward to working with the industry to bring real-world assets safely and securely into a new digital era.”
The No-Action Letter represents a pivotal element of DTCC’s long-term strategy to build a secure, transparent digital asset ecosystem. For nearly a decade, the organization has been exploring how blockchain and distributed ledger technology (DLT) could modernize post-trade processes while preserving the resilience and reliability Wall Street depends on.
Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, noted that the new tokenization initiative reflects the company’s ongoing commitment to innovation.
“This builds on our legacy of safeguarding market integrity,” Steele said. “By collaborating with the industry, we’ll enable secure, interoperable tokenized markets backed by the same resilience that has supported traditional systems for decades.”
Financial Technology Insights: Colony Bank Names Christi Rubio Chief of Brand & Development
DTC’s new tokenization model will be powered by DTCC’s ComposerX platform suite, enabling a unified liquidity environment that can bridge traditional finance (TradFi) and decentralized finance (DeFi). This opens the door for seamless interaction between tokenized and traditional assets, improving efficiency, expanding access, and reducing operational friction.
Financial Technology Insights: Binance Expands USD1 Trading Pairs in Major Market Boost
Nadine Chakar, DTCC’s Head of Digital Assets, underscored the industry-wide significance of the move.
“DLT has the power to reshape markets, and DTCC is leading that transformation with bold, forward-looking solutions,” she said. “Together with our participants, we’re building a digital asset ecosystem grounded in security, compliance, and unprecedented accessibility.”
With authorization now secured, DTCC will provide additional guidance in the coming months on onboarding requirements, approved blockchain networks, and wallet registration as it prepares for controlled production deployment. The initiative marks one of the most significant regulatory-supported advancements toward tokenizing mainstream financial instruments in U.S. history.
To share your insights with the FinTech Newsroom, please write to us at info@intentamplify.com