DTCC Wins SEC Approval To Tokenize U.S. Stocks

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DTCC Wins SEC Approval To Tokenize U.S. Stocks

• SEC lets DTCC tokenize traditional assets on approved blockchains for three years.
• Tokenized securities keep full legal rights, protections and ownership claims like originals.
• Industry leaders say approval shows U.S. markets are moving steadily toward blockchain use.

The Depository Trust & Clearing Corporation (DTCC), the core settlement and custody infrastructure for U.S. financial markets, has received a U.S. Securities and Exchange Commission No-Action Letter allowing it to offer a controlled tokenization service for real-world assets held at its subsidiary, The Depository Trust Company (DTC).

The approval gives DTCC a three-year window to operate the service under federal securities rules. The company plans to begin rolling out the system in the second half of 2026.

A Three-Year Pilot for Digital Securities

Under the authorization, DTC will be able to issue tokenized versions of traditional securities on pre-approved blockchains. The digital representations will carry the same legal rights, investor protections and ownership claims as the original assets.

Operational rollout is scheduled for the second half of 2026, giving the market infrastructure giant time to integrate blockchain rails with legacy systems.

Legal Equivalence: The ‘Digital Twin’ Model

Under the new framework, DTC is authorized to mint tokenized versions of traditional securities on pre-approved blockchain networks. Crucially, these digital representations will act as , carrying the exact same legal rights, investor protections, and ownership claims as the underlying assets held in DTC custody.

The scope focuses on liquidity. The SECs approval applies to a select group of highly liquid assets including the Russell 1000 equity index, U.S. Treasuries, and major index-tracking ETFs.

In an historic milestone, DTC received a No‑Action Letter from the SEC to tokenize certain DTC‑custodied assets. By leveraging blockchain, DTCC aims to bridge TradFi and DeFi, advancing a more resilient, inclusive and efficient global financial system. https://t.co/yYNaHfvjcS pic.twitter.com/E4W47rWBIc

— DTCC (@The_DTCC) December 11, 2025

DTCC said the new environment will maintain the same operational resilience and legal safeguards that underpin todays market structure.

Industry Reaction: ‘Backbone of Markets’ Shifts

In recent months, the SEC has given two no-action letters to crypto projects working on decentralized physical infrastructure. Several industry figures described the SECs approval as a turning point for U.S. market infrastructure.

Matthew Sigel of VanEck called the decision

He said investors may eventually withdraw tokenized Russell 1000 equities to personal wallets around the clock.David Wals, a contributor to the Ethereum Foundation, said that DTCC custodies more than $100 trillion in assets and processed $3.7 quadrillion in transactions in 2024. He said the approval shows that