SEC Grants DTCC Subsidiary No-Action Letter to Launch Tokenization Service
The SEC has issued a rare no-action letter to DTCC's subsidiary, the Depository Trust Company (DTC), permitting it to begin tokenizing traditional securities within a controlled production environment. This tokenization service is planned to launch in late 2026 and will operate on pre-approved blockchains for three years. Initial tokenized assets will include components of the Russell 1000 index, major index-tracking ETFs, and U.S. Treasury bills, notes, and bonds. The service will be accessible to DTC participants and their clients, with tokenized assets carrying the same ownership rights and protections as their traditional counterparts. The SEC has stated it will not enforce actions against the program if it is conducted as proposed, indicating regulatory openness to blockchain-based financial infrastructure innovations. DTCC CEO Frank La Salla noted that this initiative could improve collateral mobility, provide continuous market access, and enable programmable trading mechanisms, effectively bridging traditional finance and decentralized finance (DeFi).
