DTC Cleared to Launch Asset Tokenization Service

The Depository Trust Company (DTC) secured a No-Action Letter from the SEC. This clears the firm to launch a tokenization service for DTC-custodied assets.

The Depository Trust Company (DTC) has received a No-Action Letter (NAL). This was issued by the U.S. Securities and Exchange Commission (SEC). This is a significant regulatory clearance in which the firm can then provide a tokenization service. This service is for real-world, highly liquid assets, already custodied by DTC.

Tokenized Assets Maintain Full Entitlements and Protection

The new service is a subsidiary of the Depository Trust & Clearing Corporation (DTCC). It is expected to start rolling out in the second half of 2026. This initiative is a key move towards the adoption of digital assets in traditional finance.

The NAL provides the DTC with the authorization to provide the service on pre-approved blockchains. The authorization is for a period of three years. This enables DTC to deploy the service faster than would otherwise have been possible.

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The tokenization service will enable DTC participants and their clients, to tokenize some highly liquid assets. These digital representations will have the same entitlements and ownership rights. They will also have the same strong investor protection as their traditional counterparts.

The NAL authorization applies to a defined list of highly liquid assets. Moreover, this includes the Russell 1000. The Russell 1000 represents the 1,000 largest publicly traded U.S. companies by market capitalization. Furthermore, the authorization covers the ETFs that track major indices. It also includes U.S. Treasury bills, bonds, and notes.

The significance of this step was stressed by Frank La Salla, President & CEO of DTCC. He added that the tokenization of the U.S. securities market has the potential to provide transformational benefits. These benefits include new trading modalities as well as 24/7 access.

He also emphasized that this transformation is only possible if the infrastructure of the markets offers a strong foundation. Therefore, DTC will bring the same level of high resiliency and safety. This is the same level provided in traditional markets.

SEC Decision Seen as Major Milestone for Digital Assets

An important enabler is the SEC’s No-Action Letter. It helps to support DTCC’s wider strategy. The strategy that is being pushed forward is to promote a secure, transparent, and interoperable digital asset ecosystem. This includes harnessing the full power of blockchain technology.

DTCC is a major post-trade market infrastructure. It is a central clearing and settlement house for the U.S. financial system. Its central securities depository subsidiary, DTC, hit an all-time high of $100 trillion in assets under custody in June 2025.

Commissioner Hester Peirce said the project is an important incremental step. This step puts markets to the blockchain. The SEC decision means regulatory clarity. This is indispensable for a vital market infrastructure entity to explore blockchain technology safely.

DTC will work in collaboration with the industry. The aim is to safely and securely tokenize real-world assets. Ultimately, this will promote the future of finance for generations to come.

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