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SEC Greenlights DTCC: Tokenized Securities to Revolutionize US Markets
Key Takeaways
- The SEC’s no-action letter lets DTC launch a controlled tokenization service for US securities, expected by late 2026;
- The platform will tokenize assets like Russell 1000 stocks, major ETFs, and US Treasuries, which mirror traditional ownership rights;
- DTCC’s initiative bridges traditional finance and DeFi to enable 24/7 markets, improved liquidity, and programmable asset trading.
The US Securities and Exchange Commission (SEC) granted a no-action letter to the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), which allows it to offer a new tokenization service for DTC-custodied assets in a controlled environment.
The service will support a set of highly liquid assets, including the Russell 1000, exchange-traded funds (ETFs) tied to major indices, and US Treasury bills, bonds, and notes. It is expected to launch in the second half of 2026.
The no-action letter means the SEC will not take enforcement action if the tokenization offering operates as described, which gives DTC a regulatory green light to proceed under federal securities laws.
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DTCC is a key provider of US securities market infrastructure, managing clearing, settlement, and trading of US securities. Currently, the company is stepping into blockchain-based services by bridging traditional finance and decentralized finance (DeFi).
The tokenized assets will mirror their traditional versions in terms of ownership rights, investor protections, and legal status.
The letter allows DTC to offer the tokenization service to participants and their clients using pre-approved blockchains for a duration of three years.
DTCC CEO Frank La Salla noted that tokenizing the US securities market could bring benefits such as increased collateral mobility, new ways to trade, around-the-clock access, and programmable assets.
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