The Depository Trust & Clearing Corporation (DTCC) announced that its subsidiary, The Depository Trust Company (DTC), has received a No-Action Letter (NAL) from the US Securities and Exchange Commission (SEC), authorizing the introduction of a new service to tokenize real-world, DTC-custodied assets. The approval allows DTC to move ahead with preparations to operate the service within a controlled production environment under federal securities rules.

So, DTC expects to begin rolling out the service in the second half of 2026. The NAL grants three years of authorization for DTC to provide tokenization capabilities to its Participants and their clients, using pre-approved blockchains. Tokenized versions of eligible assets will carry the same rights, entitlements, investor protections, and ownership structures as their traditional counterparts, with operational resiliency and safeguards aligned with existing market infrastructure.

DTC Set to Tokenize US Securities After SEC NAL Approval

Moreover, the authorization applies to a defined group of liquid assets, including constituents of the Russell 1000 index, exchange-traded funds tracking major benchmarks, and U.S. Treasury bills, notes, and bonds. According to DTCC, the NAL enables the service to move toward implementation more quickly than standard regulatory pathways would typically allow.

So, Frank La Salla, DTCC President & CEO, highlighted the importance of the approval, noting that tokenizing U.S. securities could support new market models, wider access, collateral mobility, and programmable assets. He emphasized that such advances depend on trusted infrastructure capable of supporting digital markets at scale.

Also, Brian Steele, Managing Director and President of Clearing & Securities Services at DTCC, said the initiative extends the organization’s long history of adopting new technologies to protect market integrity. He noted that the project aims to work with Participants and industry stakeholders to deliver tokenized securities with strong legal grounding and interoperability.

Furthermore, DTCC stated that its tokenization services will be supported by its ComposerX platform suite, designed to connect liquidity across traditional and decentralized finance environments. Nadine Chakar, Managing Director and Head of Digital Assets, said the organization’s DLT efforts are here to help shape a new digital asset ecosystem.

So, under the NAL, DTC will operate the service across approved L1 and L2 blockchains. Details on onboarding, wallet registration, and network approval processes will be provided in the coming months.

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