SEC Approves DTCC Pilot to Record US Securities on Select Blockchains
The U.S. Securities and Exchange Commission (SEC) has issued a No-Action Letter approving a three-year pilot program by the Depository Trust & Clearing Corporation (DTCC) to record certain U.S. securities on selected blockchains via registered wallets, starting in the second half of 2026.
Under the pilot, DTCC may mint and burn blockchain-based tokens representing security entitlements held in its custody, with modified regulatory oversight. The SEC will not pursue enforcement actions related to these token issuance and redemption activities.
Eligible securities for tokenization include constituents of the Russell 1000 Index, U.S. Treasuries, and major index exchange-traded funds (ETFs).
DTCC is required to file quarterly reports during the pilot, detailing the number of participants, the value of tokenized entitlements, blockchains used or rejected, any system outages, the number of registered wallets in use, and any reversal events.
The relief also waives several regulatory requirements, such as 19b-4 filings and certain clearing-agency standards, focusing on DTCC's custody and control processes rather than mandating a specific blockchain technology or architecture.
Tokens may reside on approved public or private blockchains within a permissioned framework. A root DTCC wallet will have the ability to reverse or correct transactions if necessary.
The tokenization workflow involves debiting securities from DTCC’s traditional ledger, crediting a digital omnibus account, and minting the corresponding tokens to a participant’s registered wallet. This setup allows transfers to occur outside normal market hours and reduces the need for manual reconciliation.
