SEC approved! DTCC authorized to launch tokenization services, officially launching in 2026

2025-12-12 01:03:50

The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter to the Depository Trust & Clearing Corporation (DTCC), allowing the company to custody and recognize tokenized stocks and other real-world assets on the blockchain. This move enables DTCC to offer tokenization services on pre-approved blockchains for a period of three years.

DTCC plans to launch tokenization services in the second half of 2026.

As the central clearinghouse for stocks and fixed income products, DTCC plays a pivotal role in the U.S. financial system. Many liquidity assets in the U.S. market are held in DTCC’s custody division—the Depository Trust Co. According to Bloomberg, the company is expected to launch new tokenization services in the second half of next year.

Michael Winnike, Head of Global Strategy and Market Solutions at DTCC Clearing and Securities Services, said in an interview that once authorized, DTCC will also expand record-keeping to the blockchain.

This is the same legal right as holding stocks from a DTCC account in traditional form.

The SEC’s authorization for tokenization services applies only to certain securities with frequent trading. Winnike stated that this approval covers the Russell 1000 Index, representing the largest 1,000 publicly traded companies in the U.S., as well as ETFs tracking major indices, U.S. Treasuries, bonds, and notes.

The SEC “No-Action Letter” marks an important step toward on-chainization.

Winnike said the company’s ultimate goal is to add the entire securities market, worth $100 trillion, to the blockchain, which will require the U.S. Securities and Exchange Commission to further expand the scope of the no-action exemption.

A “No-Action Letter” is an official response from regulators indicating that, based on the facts provided during the application review, the regulator will not take enforcement action against the company for the specific proposed activity. This reassures companies exploring emerging or developing technologies.

The SEC’s no-action letter is also good news for other market participants considering stock tokenization. Nasdaq proposed in its filing with the SEC that tokenized assets should be clearly labeled so that participants seeking trading, clearing, and settlement, as well as DTCC responsible for clearing and settlement, can execute instructions correctly.

Winnike said that the tokenization service will help bridge the gap between the traditional and digital worlds, partly because this new technology will have the same legal rights and controls as traditional markets, including freezing or forcibly transferring assets if they are stolen.

The new blockchain service will also allow investors to transfer assets at any time, not just during traditional market hours from Monday to Friday.

SEC Commissioner Hester Peirce stated in a release:

“Although this is a pilot program with operational restrictions, it marks an important step toward bringing markets onto the blockchain.”

This article SEC Approves! DTCC Authorized to Launch Tokenization Services, Officially Going Live in 2026, originally appeared on Chain News ABMedia.

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