DTCC cleared to tokenize traditional securities on blockchain
DTCC's move to tokenize securities could accelerate the integration of traditional finance with digital markets, enhancing liquidity and innovation.
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The Depository Trust & Clearing Corporation (DTCC) has been authorized to offer a blockchain-based securities service.
According to a Thursday press release, Depository Trust Company (DTC), DTCC’s subsidiary, obtained an SEC No-Action Letter enabling it to tokenize traditional, custodied assets.
The service, set to roll out in 2026, will operate on approved blockchains for three years and provide digital representations with the same legal rights, safeguards, and entitlements as their traditional counterparts.
Assets covered include the Russell 1000, major index ETFs, and US Treasury bills, notes, and bonds.
DTCC said the authorization will support the long-term shift toward digital markets. The service will play a key role in advancing a secure digital asset ecosystem and enabling innovations like 24/7 trading, improved collateral flow, and programmable financial instruments.
The tokenization framework is intended to connect TradFi and DeFi liquidity in a resilient and cost-efficient manner. DTCC, which has long studied DLT’s market applications, plans to outline wallet registration and L1/L2 approval processes in upcoming updates.