DTCC Gets SEC Approval to Tokenize Stocks and Treasury Bonds Starting 2026

TLDR

• The SEC granted DTCC’s subsidiary DTC a no-action letter to tokenize US securities including Russell 1000 stocks, ETFs, and Treasury bonds
• The tokenization service will launch in the second half of 2026 and operate on pre-approved blockchains for three years
• Tokenized assets will maintain the same ownership rights and investor protections as traditional securities
• The SEC has issued several no-action letters recently, showing increased openness to blockchain financial infrastructure under Chair Paul Atkins
• Research suggests RWA tokenization could tap into a $400 trillion traditional finance market, with tokenized assets potentially reaching $16 trillion by 2030

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The US Securities and Exchange Commission has approved the Depository Trust and Clearing Corporation to begin tokenizing major financial assets. The DTCC received a no-action letter on Thursday for its subsidiary, the Depository Trust Company.

The approval allows DTC to tokenize securities in a controlled production environment. This marks a shift in how traditional financial assets may operate on blockchain technology.

The DTCC plans to tokenize assets from the Russell 1000 index, exchange-traded funds tracking major indexes, and US Treasury bills, bonds, and notes. The service will launch in the second half of 2026.

The tokenization program will run on pre-approved blockchains for three years. DTC participants and their clients will have access to the service.

A no-action letter means the SEC will not pursue enforcement action if the program operates as proposed. These letters are rare and represent a form of regulatory approval.

Tokenized Assets Will Match Traditional Securities

The DTCC stated that tokenized versions of these assets will carry identical ownership rights and investor protections as traditional securities. This ensures legal parity between digital and physical forms of the same asset.

DTCC CEO Frank La Salla thanked the SEC for approving the program. He said tokenizing the US securities market could bring benefits like collateral mobility, new trading options, 24/7 market access, and programmable assets.

The DTCC operates critical market infrastructure for US securities. The organization handles clearing, settlement, and trading operations for the American financial system.

SEC Shows Growing Support for Blockchain Finance

The SEC has issued multiple no-action letters in recent months. Two decentralized physical infrastructure network projects received similar letters earlier this year.

In late September, the SEC cleared investment advisers to use state trust companies as crypto custodians. This marked another step in regulatory clarity for digital assets.

SEC Chair Paul Atkins has taken a more measured approach to crypto regulation. Atkins previously worked as a crypto lobbyist before leading the agency.

Research from Animoca Brands suggests RWA tokenization could access a $400 trillion traditional finance market. The study looked at private credit, treasury debt, commodities, stocks, alternative funds, and bonds.

Standard Chartered’s venture arm backed Libeara, a blockchain infrastructure platform, recently launched a tokenized gold investment fund in Singapore. The fund allows professional investors to access gold through blockchain-based tokens.

The 2025 Skynet RWA Security Report projects the tokenized RWA market could reach $16 trillion by 2030. This growth would represent a massive expansion of blockchain-based financial products.

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