SEC Grants DTCC Subsidiary No-Action Letter to Launch Tokenization Service

The U.S. Securities and Exchange Commission has issued a rare no-action letter to the Depository Trust and Clearing Corporation's subsidiary, DTC, paving the way for tokenization of traditional securities. This landmark decision allows DTC to tokenize a basket of highly liquid assets, including Russell 1000 components, major ETFs, and U.S. Treasury instruments, with a planned launch in late 2026.

The three-year pilot program will operate on pre-approved blockchains, marking a significant shift in regulatory stance toward blockchain-based financial infrastructure. As the backbone of U.S. securities settlement, DTCC's MOVE signals institutional validation of tokenization technology at the highest levels of market infrastructure.

Market participants view this as a watershed moment for digital asset adoption, with the SEC's tacit approval suggesting growing comfort with blockchain applications in regulated markets. The controlled production environment sets a precedent for future institutional blockchain deployments while maintaining regulatory oversight.