The US Securities and Exchange Commission has issued a highly sought-after “no-action” letter to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), enabling it to introduce a new service for tokenizing securities in the market.
On Thursday, the DTCC announced that its subsidiary, the Depository Trust Company (DTC), received authorization to initiate “a new service to tokenize real-world, DTC-custodied assets in a controlled production environment.”
The DTC plans to tokenize “a collection of highly liquid assets” including the Russell 1000 index, exchange-traded funds linked to major indexes, US Treasury bills, bonds, and notes, with the service anticipated to launch in the latter half of 2026.
The DTCC plays a pivotal role in market infrastructure, providing clearing, settlement, and trading of US securities. The SEC’s no-action letter offers critical approval for its initiative, assuring that the agency will refrain from enforcement actions as long as the product functions as intended.
“I want to express our gratitude to the SEC for their confidence in us,” said DTCC CEO Frank La Salla. “Tokenizing the US securities market can lead to transformative advantages, including enhanced collateral mobility, innovative trading options, 24/7 access, and programmable assets.”
In a 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
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The DTCC indicated that the no-action letter permits its subsidiary “to provide a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years.”
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“DTC will be positioned to tokenize real-world assets, with the digital representation possessing all the same entitlements, investor protections, and ownership rights as the asset in its traditional format,” the announcement stated.
The SEC rarely issues no-action letters, but SEC chair Paul Atkins, a former crypto lobbyist, has become more receptive to the industry and has elaborated on how crypto products are encompassed within the agency’s regulations.
In recent months, the SEC has granted two no-action letters to decentralized physical infrastructure network (DePIN) crypto projects.
In late September, the SEC also released a no-action letter that permitted investment advisers to utilize state trust companies as crypto custodians.
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