The Depository Trust & Clearing Corporation (DTCC) has reached a major milestone in digital finance: its subsidiary, The Depository Trust Company (DTC), has received a No-Action Letter (NAL) from the U.S. Securities and Exchange Commission, allowing it to launch a tokenization service for real-world, DTC-custodied assets. The initiative is expected to roll out in the second half of 2026.

This regulatory nod enables DTC to tokenize select assets—including the Russell 1000, major ETFs, and U.S. Treasuries—on pre-approved blockchains for three years. Each digital token will carry the same entitlements, investor protections, and ownership rights as its traditional counterpart, while maintaining the resilience and reliability of conventional markets.

“Tokenizing the U.S. securities market could unlock transformative benefits such as collateral mobility, new trading modalities, 24/7 access, and programmable assets,” said Frank La Salla, DTCC President & CEO. “This opportunity allows us to safely innovate and advance the future of finance for generations to come.”

Bridging TradFi and DeFi
The tokenization service is part of DTCC’s broader strategy to create a secure, transparent, and interoperable digital asset ecosystem. Leveraging DTCC’s ComposerX suite, the platform will unify liquidity across traditional and decentralized finance markets, offering participants faster, cost-efficient, and more inclusive market access.

“DTCC has long pioneered technologies that redefine markets while safeguarding integrity,” said Brian Steele, Managing Director and President of Clearing & Securities Services. “Our tokenization initiative will provide uncompromising security, sound legal footing, and seamless interoperability for the digital market era.”

A Decade of Preparation
DTC has spent nearly ten years exploring distributed ledger technology (DLT) to ensure any tokenization service preserves protections and accountability. Key benefits include:

• Mobility: Assets can move across jurisdictions and time zones without traditional market hours.
• Decentralization: Participants gain more direct access to their holdings.
• Programmability: Smart contracts optimize transfers and allocations.

Under the SEC’s NAL, DTC can operate a limited production environment across Layer 1 and Layer 2 blockchain providers. Details on participant onboarding, wallet registration, and network approval will be released in the coming months.

As regulators increasingly engage with digital asset innovation, DTCC’s move positions the company at the forefront of modernizing post-trade markets, potentially accelerating adoption of tokenized securities in mainstream finance.