The US Securities and Change Fee has given a subsidiary of the Depository Belief and Clearing Company (DTCC) a extremely coveted “no-action” letter, permitting it to supply a brand new securities market tokenization service.
The DTCC mentioned on Thursday that its subsidiary, the Depository Belief Firm (DTC), was given the go-ahead to launch “a brand new service to tokenize real-world, DTC-custodied property in a managed manufacturing setting.”
The DTC will tokenize a “set of extremely liquid property” together with the Russell 1000 index, exchange-traded funds monitoring main indexes, US Treasury payments, bonds and notes, with the service anticipated to roll out within the second half of 2026.
The DTCC runs essential market infrastructure, offering clearing, settlement and buying and selling of US securities. The SEC no-action letter provides it an essential sign-off on its plan, confirming that the company received’t take enforcement motion if its proposed product operates as described.
“I need to thank the SEC for its belief in us,” mentioned DTCC CEO Frank La Salla. “Tokenizing the US securities market has the potential to yield transformational advantages reminiscent of collateral mobility, new buying and selling modalities, 24/7 entry and programmable property.”
In an historic milestone, DTC obtained a No‑Motion Letter from the SEC to tokenize sure DTC‑custodied property. By leveraging blockchain, DTCC goals to bridge TradFi and DeFi, advancing a extra resilient, inclusive and environment friendly world monetary system. https://t.co/yYNaHfvjcS pic.twitter.com/E4W47rWBIc
— DTCC (@The_DTCC) December 11, 2025
SEC clearing up grey areas with no-action letters
The DTCC mentioned the no-action letter permits its subsidiary “to supply a tokenization service for DTC Contributors and their purchasers on pre-approved blockchains for 3 years.”
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“DTC may have the power to tokenize real-world property, with the digital model having all the identical entitlements, investor protections and possession rights because the asset in its conventional type,” it mentioned.
The SEC not often provides no-action letters, however SEC chair Paul Atkins, a former crypto lobbyist, has warmed to the business and has outlined how crypto merchandise fall beneath his company’s regime.
Over the previous few months, the SEC has handed out two no-action letters to decentralized bodily infrastructure community (DePIN) crypto initiatives.
In late September, the SEC additionally issued a no-action letter that cleared the way in which for funding advisers to make use of state belief corporations as crypto custodians.
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