DTCC Gains SEC Approval for Chainlink-Powered U.S. Securities Tokenization

The Depository Trust & Clearing Corporation (DTCC) has received SEC approval to tokenize U.S. securities using Chainlink, enabling the settlement of high-liquidity assets like stocks and ETFs on blockchain networks starting in 2026. This move integrates traditional finance with distributed ledger technology for faster, more efficient transactions.

• DTCCs approval marks a pivotal advancement in blockchain adoption for U.S. securities settlement.
• Chainlinks infrastructure will facilitate secure data feeds and cross-chain interoperability for tokenized assets.
• On-chain real-world asset activity has surpassed $1.4 billion, highlighting growing demand for tokenization solutions.

What is DTCCs Tokenization Approval Using Chainlink？

DTCC tokenization approval using Chainlink allows the Depository Trust & Clearing Corporation, which processes the majority of U.S. securities trades, to experiment with blockchain-based representations of traditional assets. Issued via a No-Action Letter from the U.S. Securities and Exchange Commission, this clearance permits DTCCs subsidiary, the Depository Trust Company, to tokenize select high-liquidity securities for a three-year pilot. The initiative, set to launch in late 2026, targets assets such as Russell 1000 stocks, major exchange-traded funds, and U.S. Treasury instruments on compliant blockchain networks.

Why Does Chainlink Play a Central Role in This DTCC Initiative？

Chainlink‘s selection stems from its proven reliability in bridging traditional finance with blockchain ecosystems. In a prior DTCC pilot called Smart NAV, Chainlink’s cross-chain capabilities successfully distributed fund valuation data across multiple networks, demonstrating seamless interoperability. This technology ensures accurate, tamper-proof data oracles essential for regulated environments. DTCC Managing Director and CTO Dan Doney stated, “By using partners like Chainlink, we‘re able to move very quickly and completely update financial markets.” Experts from the blockchain analytics firm Messari note that Chainlink’s infrastructure reduces settlement times from days to near-instantaneous, potentially cutting operational costs by up to 50% according to internal DTCC estimates. The systems ability to maintain data consistency across disparate blockchains addresses key regulatory concerns around security and auditability.

Frequently Asked QuestionsWhat Assets Will Be Included in DTCCs Initial Tokenization Program？

The program focuses on highly liquid securities to minimize risk, including components of the Russell 1000 index, prominent ETFs, and various U.S. Treasury debt forms. This selection ensures compatibility with existing market infrastructure while testing blockchain settlement in a controlled manner, as outlined in the SECs No-Action Letter.

How Will DTCCs Tokenization with Chainlink Impact Traditional Finance？

DTCCs tokenization with Chainlink will streamline securities settlement by leveraging blockchain for faster, more transparent processes that integrate with legacy systems. This approach allows institutions to modernize without overhauling core operations, fostering efficiency in a market that handles trillions in daily trades while complying with strict regulatory standards.

Key Takeaways

• Regulatory Milestone: DTCCs SEC approval via No-Action Letter signals a maturing framework for blockchain in U.S. finance, limited to three years for controlled evaluation.
• Chainlinks Proven Edge: Building on the Smart NAV pilot, Chainlink provides essential cross-chain data solutions, ensuring interoperability and data integrity for tokenized securities.
• Market Implications: With on-chain real-world assets exceeding $1.4 billion in activity, this initiative could accelerate broader adoption, urging financial institutions to prepare for tokenized markets.