DTCC Authorized To Launch Tokenization Service For U.S. Securities

Source: ETHNews Original Title: DTCC Authorized To Launch Tokenization Service For U.S. Securities Original Link: https://www.ethnews.com/dtcc-authorized-to-launch-tokenization-service-for-u-s-securities/ The U.S. securities market is moving closer to large-scale tokenization after The Depository Trust & Clearing Corporation announced a major regulatory milestone.

DTCC confirmed that its subsidiary, The Depository Trust Company (DTC), has received a No-Action Letter from the U.S. Securities and Exchange Commission, allowing it to offer a new tokenization service for real-world assets held in DTC custody.

The authorization enables DTC to begin preparing a controlled production rollout, with the service expected to launch in the second half of 2026.

What The SEC No-Action Letter Allows

The SEC’s No-Action Letter permits DTC to operate a tokenization service for three years under defined conditions. The service will be available to DTC participants and their clients and will operate only on pre-approved blockchain networks.

Under this framework, DTC is authorized to tokenize eligible real-world assets while ensuring the digital representations carry the same ownership rights, investor protections, and entitlements as their traditional counterparts. DTCC stated that the service will maintain the same standards of resiliency, safety, and soundness that underpin today’s post-trade market infrastructure.

Assets Eligible For Tokenization

The authorization applies to a defined group of highly liquid assets. These include:

• Equities within the Russell 1000, representing the largest U.S. publicly traded companies
• Exchange-traded funds tracking major market indices
• U.S. Treasury bills, notes, and bonds

DTCC noted that the No-Action Letter significantly accelerates the ability to launch the service, allowing DTC to proceed without waiting for a longer rulemaking process, provided all conditions are met.

DTCC’s Vision For Tokenized Markets

DTCC leadership framed the approval as a foundational step toward modernizing financial markets. President and CEO Frank La Salla emphasized that tokenization could unlock benefits such as improved collateral mobility, new trading models, continuous market access, and programmable financial instruments, but only if supported by trusted market infrastructure.

DTCC views the authorization as a critical enabler of its broader strategy to build a secure, transparent, and interoperable digital asset ecosystem that leverages blockchain technology without compromising market integrity.

Infrastructure And Industry Collaboration

The tokenization service will be supported by DTCC’s ComposerX platform suite, designed to connect traditional financial markets with emerging digital asset infrastructure. DTCC stated that this approach aims to create a single pool of liquidity across traditional finance and decentralized systems, improving efficiency and resilience.

The organization highlighted that industry collaboration will remain central to the initiative, with ongoing coordination among market participants, peers, and technology providers.

Operational Scope And Next Steps

Under the No-Action Letter, DTC is authorized to offer the service across Layer 1 and Layer 2 blockchain networks. DTCC plans to provide additional details in the coming months regarding onboarding requirements, wallet registration, and the approval process for supported networks.

DTCC also noted that it has spent nearly a decade exploring distributed ledger technology alongside market participants, focusing on benefits such as asset mobility across jurisdictions, more direct access for participants, and programmable asset transfers, all while preserving the protections and accountability of existing market structures.

With SEC authorization now in place, DTCC’s tokenization initiative marks a significant step toward integrating blockchain-based assets into the core of U.S. financial market infrastructure.