Depository Trust & Clearing Corporation (DTCC), considered the backbone of the US securities markets, has crossed a critical threshold in the field of tokenization. In a statement, the institution announced that its subsidiary, Depository Trust Company (DTC), received a "no-action letter" from the US Securities and Exchange Commission (SEC). This letter signifies a three-year authorization for the tokenization and offering of certain real-world assets (RWAs) on blockchains.
Important Approval from the SEC
This approval is not a direct license from the SEC, but rather an official opinion stating that no sanctions will be applied to the proposed activity. However, its impact on the market is significant. This step paves the way for the controlled tokenization of certain stocks, exchange-traded funds (ETFs), and Treasury bonds in the US for the first time. According to information shared by DTCC, the authorization will allow the tokenization of shares of companies included in the Russell 1000 index, ETFs tracking major US indices, and US Treasury bills, bonds, and long-term debt instruments. DTC plans to offer this service through its ComposerX platform on pre-approved Layer-1 and Layer-2 blockchain networks. The service is expected to be rolled out gradually in the second half of 2026. Tokenization refers to the creation of digital representations of traditional financial assets on the blockchain. The aim is to speed up exchange processes, reduce operational costs, and increase liquidity. DTCC specifically emphasizes that these tokenized assets will carry the same investor rights, ownership structure, and legal protections as their traditional counterparts. In other words, the resulting tokens are not merely technical representations but are financial instruments with legal backing. DTCC President and CEO Frank La Salla states that this development is a significant milestone in the transition to digital markets. According to La Salla, tokenization can only scale up if the legal certainty and security standards provided by existing market infrastructures are maintained. Brian Steele, Head of Clearing & Securities Services, states that this initiative aims to bring the operational resilience and security built over the years to the digital asset world. The inclusion of DTCC in the system shows that tokenization will no longer be limited to experimental projects or limited pilot studies. The institution is responsible for the clearing and custody of trillions of dollars worth of transactions in the US and global markets. According to 2025 data, DTC alone handles the custody and asset services of over $100 trillion worth of securities. Therefore, this step signals a structural change in terms of market architecture, collateral management, and liquidity flows. This development is also seen as part of a broader shift in the regulatory climate in Washington. Recently, both the SEC and the Commodity Futures Commission (CFTC) have adopted a more flexible and technology-open approach to digital assets. Tokenization initiatives by institutions such as JPMorgan, BlackRock, Coinbase, and Kraken also support this transformation. DTCC states that stablecoin distributions or tokenized deposit-like structures could be integrated into the system in later stages, but this would require additional regulatory approvals.
