DTCC Gets SEC Clearance to Pilot Tokenized U.S. Securities

The Depository Trust & Clearing Corporation (DTCC) has received a no-action letter from the U.S. Securities and Exchange Commission (SEC) that allows it to test a new service for creating tokenized versions of assets it already holds.

On Dec. 11, the SEC approved a three-year pilot for certain Layer 1 (L1) and Layer 2 (L2) blockchains, starting in the second half of 2026. The program covers highly liquid assets, including stocks in the Russell 1000 index (the 1,000 largest publicly traded U.S. companies), major index-tracking exchange-traded funds (ETFs), and U.S. Treasury bills, notes and bonds.

According to a press release viewed by The Defiant, the tokenized versions must keep the same rights and protections as the original securities. The no-action letter also allows the Depository Trust Company (DTC), a subsidiary of the DTCC, to start the service more quickly than usual, provided it follows certain rules.

The move highlights growing acceptance of blockchain technology in traditional finance (TradFi). By allowing DTCC to tokenize U.S. stocks, ETFs and Treasury securities, the SEC is opening the door to quicker and more flexible trading while keeping the same investor protections, according to Frank La Salla, President & CEO, DTCC.

“Tokenizing the U.S. securities market has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access and programmable assets, but this will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era,” La Salla added. “We welcome this opportunity to further enable and innovate for the industry, our participants and their clients.”

The DTCC said it will release more details in the coming months about onboarding, wallet registration, and the process for approving eligible blockchain networks.

The move comes amid broader debate over tokenization in U.S. markets. Some firms, like decentralized finance (DeFi) protocol Ondo Finance, have urged the SEC to delay approval of Nasdaq’s tokenized securities plans until more details about how the DTC will handle settlement are made public.

Ondo argued that transparency is needed to ensure fair competition and prevent larger institutions from gaining an advantage. At the same time, the tokenization of real-world assets (RWA) is growing rapidly, with more than $33 billion now on-chain, per RWAxyz.