Key Takeaways
- DTC has secured an SEC No-Action Letter that will allow it to tokenize traditional, custodial assets within a regulated production environment.
- The new service will use distributed ledger technology for the settlement and custody of securities.
The Depository Trust & Clearing Corporation (DTCC) is authorized to offer a blockchain-based securities service.
According to a press release on Thursday, Depository Trust Company (DTC), the subsidiary of DTCC, has obtained an SEC No-Action Letter allowing it to tokenize traditional custodial assets.
The service, which will be rolled out in 2026, will operate on approved blockchains for three years and provide digital representations with the same legal rights, safeguards and entitlements as their traditional counterparts.
Assets covered include the Russell 1000, major index ETFs and U.S. Treasury securities, notes and bonds.
DTCC said the authorization will support the long-term shift to digital markets. The service will play a key role in promoting a secure digital asset ecosystem and enabling innovations such as 24/7 trading, improved collateral flow and programmable financial instruments.
The tokenization framework aims to connect TradFi and DeFi liquidity in a resilient and cost-efficient manner. DTCC, which has long studied the market applications of DLT, plans to outline the processes for portfolio registration and L1/L2 approval in upcoming updates.