U.S. SEC Grants Implicit Nod for Tokenized Stocks on Blockchain Platforms
The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter to Depository Trust Co. (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), allowing a tokenization service on approved blockchains for a period of three years. This letter implicitly permits the offering of certain tokenized stocks and related securities on blockchain platforms, covering constituents of the Russell 1000 index, ETFs tracking major indexes, and U.S. Treasuries.
Tokenization involves representing stocks, bonds, and other real-world assets as digital tokens to enable faster settlement using blockchain technology. The DTCC plans to launch this tokenization service in the first half of 2026.
Major traditional financial firms such as JPMorgan and BlackRock have ongoing projects related to tokenization, demonstrating growing institutional interest in this innovative approach. The SEC's stance provides an implicit nod—meaning no enforcement action will be taken—though it does not constitute explicit regulatory approval.
