Important points
- DTC has secured an SEC no-action letter, allowing it to tokenize traditional custody assets within a regulated operating environment.
- The new service leverages distributed ledger technology for securities settlement and storage.
Depository Trust & Clearing Corporation (DTCC) is licensed to provide blockchain-based securities services.
According to a Thursday press release, Depository Trust Company (DTC), a subsidiary of DTCC, has obtained an SEC no-action letter enabling the tokenization of traditional custody assets.
Scheduled to roll out in 2026, the service will operate on a certified blockchain for three years and provide digital representations with the same legal rights, safeguards and entitlements as their traditional counterparts.
Eligible assets include the Russell 1000, major index ETFs, Treasury bills, paper money, and bonds.
DTCC said this authorization will support the long-term transition to a digital market. The service will play a key role in driving a secure digital asset ecosystem and enabling innovations such as 24/7 trading, improved collateral flow, and programmable financial products.
The tokenization framework aims to bring together TradFi and DeFi liquidity in a resilient and cost-effective manner. DTCC, which has been researching market applications for DLT for many years, will outline wallet registration and L1/L2 approval processes in future updates.
