Key takeaways
- DTC has obtained a no-action letter from the Securities and Exchange Commission (SEC) to enable it to tokenize traditional assets held within a regulated production environment.
- The new service will leverage distributed ledger technology to settle and hold securities.
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The Depository Trust & Clearing Corporation (DTCC) is licensed to provide a blockchain-based securities service.
According to Thursday press releaseDepository Trust Company (DTC), a subsidiary of DTCC, has obtained a no-action letter from the Securities and Exchange Commission (SEC), enabling it to tokenize traditional custody assets.
The service, scheduled to launch in 2026, will operate on certified blockchains for three years and will provide digital representations with the same legal rights, guarantees and entitlements as their traditional counterparts.
Assets covered include the Russell 1000 index, major index ETFs, and U.S. Treasury bills, notes, and bonds.
The mandate will support the long-term shift towards digital markets, DTCC said. The service will play a key role in developing the secure ecosystem for digital assets 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 flexible and cost-effective way. DTCC, which has long studied DLT market applications, plans to outline wallet registration and L1/L2 approval processes in upcoming updates.
