DTCC Tokenization Approval Signals New Era for U.S. Securities

The U.S. Securities and Exchange Commission has granted the Depository Trust Company a no-action letter, clearing the path for tokenization of real-world assets. This milestone allows DTC to operate in a controlled production environment, ensuring compliance with federal securities laws while maintaining investor protections.

Highly liquid assets, including the Russell 1000 Index, ETFs, and U.S. Treasury instruments, will be among the first to be tokenized. The three-year license for pre-approved blockchains sets the stage for operations to commence in late 2026, promising faster settlement, enhanced liquidity, and programmable asset functionality.

Market experts anticipate significant efficiency gains, with potential reductions in settlement times from T+1 to near-instantaneous execution. The initiative represents a strategic bridge between traditional finance and decentralized ecosystems, leveraging DTCC's ComposerX platform to create unified liquidity pools.