The US Securities and Exchange Commission has granted a subsidiary of the Depository Trust and Clearing Corporation a coveted “no-action” letter, clearing the way for a new securities market tokenization service.
DTCC announced on Thursday that its unit, the Depository Trust Company, received approval to introduce “a new service to tokenize real-world, DTC-custodied assets in a controlled production environment.”
Under the plan, the DTC will tokenize a range of “highly liquid assets,” including the Russell 1000 index, major index-tracking ETFs, and US Treasury bills, bonds, and notes. The service is expected to launch in the second half of 2026.
DTCC operates key market infrastructure in the US, handling the clearing, settlement, and trading of securities. The SEC’s no-action letter effectively confirms that the agency will not pursue enforcement as long as the product functions as described.
“We appreciate the SEC’s trust,” said DTCC CEO Frank La Salla. “Tokenizing the US securities market could unlock transformational benefits, from improved collateral mobility and new trading mechanisms to 24/7 access and programmable assets.”
SEC clarifies gray areas with new no-action letters
DTCC said the no-action letter enables its subsidiary to “offer a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years.” According to the company, the DTC will be able to tokenize real-world assets, with the digital versions carrying the same entitlements, investor protections, and ownership rights as their traditional counterparts.
No-action letters from the SEC are uncommon, but chair Paul Atkins — a former crypto lobbyist — has shown a more supportive stance toward the industry and has begun to outline how crypto products fit within the agency’s framework.
In recent months, the SEC has issued two no-action letters to decentralized physical infrastructure network (DePIN) crypto projects. And in late September, the agency granted another no-action letter permitting investment advisers to use state trust companies as crypto custodians.
