DTCC Cleared to Launch New Tokenization Service
The Depository Trust & Clearing Corporation (DTCC) has received approval from the U.S. Securities and Exchange Commission (SEC) to launch a new tokenization service. This authorization lets DTCC’s subsidiary, The Depository Trust Company (DTC), to tokenize real-world, DTC-custodied assets under federal securities laws.
What the SEC Approval Means
The SEC granted DTC a No-Action Letter (NAL). This permission is valid for three years and applies only to pre-approved blockchains. It lets DTC Participants and their clients access tokenized versions of traditional assets. They carry the same protections, entitlements, and ownership rights as their original forms.
Launch Timeline
DTC plans to begin rolling out the tokenization service in the second half of 2026.
Assets Covered Under the Authorization
The authorization applies to a specific set of highly liquid assets, including:
- Russell 1000 companies (the 1,000 largest publicly traded U.S. firms by market cap)
- ETFs tracking major indices
- U.S. Treasury bills, bonds, and notes
Key Features of DTC’s Tokenization Service
- Asset mobility across jurisdictions and time zones
- 24×7 access through blockchain rails
- Programmability through smart contracts
- Traditional market-grade resiliency, safety, and soundness
Why the NAL Is Significant
The No-Action Letter lets DTC launch its tokenization service more quickly than through normal regulatory pathways. It serves as an important step in DTCC’s goal to build a transparent and interoperable digital asset ecosystem.
Technology and Ecosystem Approach
DTC’s tokenization model will operate across approved L1 and L2 networks. Participants will receive guidance on wallet registration and onboarding requirements in upcoming updates. The system aims to create a single liquidity pool spanning traditional finance and decentralized finance (DeFi).
About DTCC
The Depository Trust & Clearing Corporation (DTCC) is a U.S.-based financial services company. It provides clearing, settlement, and information services for various securities, including equities, bonds, and derivatives. DTCC emerged from the merger of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). Both were founded in the 1970s to address the paperwork crisis in the securities industry. DTCC’s primary goal is to enhance the efficiency and security of financial markets by automating and centralizing the post-trade process.
Summing Up
Now, DTCC is prepared to begin real-world tokenization at scale with nearly a decade of research into DLT behind it. This SEC authorization is a step toward a more resilient, efficient, and inclusive digital financial system.
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