DTCC Approved to Provide Custodial Asset Tokenization Services, Accelerating the Popularization of Digital Assets

Source: DTCC Official Website, Compiled by: Jinse Finance

To promote the adoption of digital assets, the Depository Trust & Clearing Corporation (DTCC), a leading global provider of aftermarket infrastructure for financial services, announced that its subsidiary, Depository Trust Company (DTC), has received a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), authorizing it to offer a new service in a controlled production environment, in accordance with federal securities laws and regulations, to tokenize real-world assets held in custody by DTC. DTC expects to launch this service in the second half of 2026.

The SEC has authorized DTC to provide tokenization services to DTC participants and their clients on a pre-approved blockchain for a period of three years. According to the letter, DTC will be able to tokenize real-world assets, with the **digital versions** enjoying the same rights, investor protection, and ownership as traditional assets. Furthermore, DTC will provide the same level of resilience, security, and robustness as traditional markets. This authorization applies to a range of specific highly liquid assets, including the **Russell 1000 Index** (representing the 1000 largest U.S. listed companies by market capitalization), **ETFs tracking major indices**, and Treasury bonds, bonds, and stocks. This SEC "no action" letter is significant because it allows DTC to launch the service faster than it would otherwise have, provided certain restrictions and relevant statements are met. “I want to thank the SEC for its trust in us. Tokenization of the U.S. securities markets promises many transformative benefits, such as enhanced collateral liquidity, new trading models, 24/7 trading, and programmable assets, but this new digital age can only be realized with a solid foundation of market infrastructure,” said Frank La Salla, President and CEO of DTCC. “We are very excited to have this opportunity to further empower the industry, our participants, and their clients, and drive innovation. We look forward to working with all stakeholders in the industry to securely and reliably tokenize real-world assets, thereby driving the future of finance for future generations.” The SEC’s “no action” letter is a key driver of DTCC’s broader strategy to advance a secure, transparent, and interoperable digital asset ecosystem and fully realize the potential of blockchain technology. “Since its inception, DTCC has been committed to pioneering groundbreaking technologies, reshaping market landscapes, and maintaining market integrity. Our tokenization initiative will take this a step further, enabling us to collaborate with stakeholders across the industry to usher in the digital market era,” said Brian Steele, President and Managing Director of Clearing and Securities Services at DTCC. “We will work with our clients and the wider market to tokenize securities with uncompromising security, a sound legal foundation, and seamless interoperability—all built on the resilience that has underpinned traditional markets for decades.” To support this strategy, DTCC’s tokenization solution will enable DTC participants and their clients to leverage a comprehensive suite of tokenization services powered by DTCC’s ComposerX platform suite. This will allow DTC to create a unified liquidity pool across the traditional finance (TradFi) and decentralized finance (DeFi) ecosystems, building a more resilient, inclusive, cost-effective, and efficient financial system. “Distributed ledger technology (DLT) has the potential to reshape markets, and DTCC is leading this transformation through innovative initiatives and bold solutions,” said Nadine Chakar, Managing Director and Head of Digital Assets at DTCC. “Our suite of DLT products will underpin DTCC’s tokenization services and, together with the industry, drive the development of a new digital asset ecosystem for everyone.” DTC has collaborated with participants, peers, and technology providers for nearly a decade to explore and promote the use of DLT technology, identifying how to leverage it to enable market participants to take advantage of the benefits of blockchain and tokenization, including liquidity (the ability to transfer assets across jurisdictions and time zones regardless of standard trading hours or holidays), decentralization (more direct access to assets for market participants), and programmability (the ability to use smart contracts to optimize asset transfers or distributions), all while enjoying the same protection and accountability mechanisms provided by DTC. Under SEC authorization, DTC is permitted to offer limited production-level tokenization services on L1 and L2 network providers. DTCC will provide more details in the coming months regarding listing requirements (including wallet registration) and the L1 and L2 network approval process.