The Depository Trust and Clearing Corporation announced Thursday that its subsidiary received a No-Action Letter from the Securities and Exchange Commission to tokenize real-world assets.
The approval allows The Depository Trust Company to offer tokenization services for the Russell 1000, ETFs, U.S. Treasury bills, bonds, and notes on pre-approved blockchains beginning in the second half of 2026, and could clear the way for more companies to pursue tokenized stock products.
DTCC provides post-trade infrastructure, including clearance and settlement for the U.S. financial markets. In other words, the DTCC handles the “behind-the-scenes” work of ensuring securities transactions are completed properly.
The letter permits the depository to operate this service for three years under federal securities laws.
“Tokenizing the US securities market,” said DTCC President and CEO Frank La Salla in a statement, “has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access and programmable assets. But this will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era.”
The service will allow digital versions of these securities to retain the same entitlements, investor protections, and ownership rights as their traditional counterparts.
The depository has explored distributed ledger technology for nearly a decade to determine how it can facilitate asset mobility and programmability. The authorized service will operate in a limited production environment across Layer 1 and Layer 2 providers. Further details regarding onboarding requirements and wallet registration are expected in the coming months.
Separately, federal regulators moved to modernize frameworks for digital assets on Thursday. Commodity Futures Trading Commission Acting Chairman Caroline D. Pham announced the withdrawal of outdated guidance related to the delivery of virtual currencies. The decision reflects substantial developments in crypto asset markets.
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year,” Pham stated. The withdrawal allows the commission to implement recommendations from President Trump’s Working Group on Digital Asset Markets.
