SEC Grants DTCC Subsidiary No-Action Letter to Launch Tokenization Service
The US Securities and Exchange Commission has given a key inexperienced gentle to the Depository Trust and Clearing Corporation’s (DTCC) push into blockchain-based markets.
Key Takeaways:
- The SEC granted DTC a uncommon no-action letter, clearing the way in which for tokenizing main US market belongings.
- The tokenization service will launch in late 2026 and run on pre-approved blockchains for 3 years.
- The transfer alerts a broader regulatory shift because the SEC exhibits better openness to blockchain-based monetary infrastructure.
On Thursday, the DTCC confirmed that its subsidiary, the Depository Trust Company (DTC), acquired a uncommon “no-action” letter that permits it to start tokenizing conventional securities in a managed manufacturing setting.
DTC to Tokenize Treasuries, ETFs and Russell 1000 Assets by 2026
Under the approval, the DTC plans to tokenize a basket of extremely liquid devices, together with parts of the Russell 1000 index, main index-tracking ETFs, and US Treasury payments, notes, and bonds.
The service is scheduled for launch within the second half of 2026 and is designed to function on pre-approved blockchains for a interval of three years.
The DTCC, which underpins a lot of the US securities market by means of its clearing and settlement operations, stated the no-action letter confirms the company is not going to pursue enforcement if this system is carried out as proposed.
Market observers view the choice as a major regulatory sign, as no-action letters are unusual and sometimes reserved for initiatives with clear safeguards.
DTCC CEO Frank La Salla welcomed the transfer, saying the tokenization effort might reshape how securities transfer throughout the monetary system.
He pointed to potential enhancements akin to quicker collateral mobility, steady market entry, and new buying and selling mechanisms enabled by programmable belongings.
According to the corporate, tokenized variations of those belongings will carry the identical possession rights, investor protections, and entitlements as their conventional counterparts, offering a bridge between legacy market construction and rising blockchain rails.
The service will probably be accessible to DTC contributors and their shoppers.
The SEC has taken a noticeably extra open stance towards blockchain initiatives over the previous yr.
Two decentralized bodily infrastructure community (DePIN) initiatives received similar no-action treatment, and in late September, the company cleared funding advisers to work with state belief corporations serving as crypto custodians.
In August, the company issued a similar letter to Double Zero, stunning many within the trade and fueling optimism that the SEC, now led by Chair Paul Atkins, is taking a extra measured strategy after years of rigidity below former chair Gary Gensler.
RWA Tokenization Gains Momentum
On Monday, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s enterprise arm SC Ventures, rolled out a new tokenized gold funding fund in Singapore, bringing one of many world’s oldest safe-haven belongings onto digital rails.
The fund, launched in partnership with FundBridge Capital, permits skilled traders to achieve publicity to gold by means of blockchain-based tokens issued on Libeara’s ledger.
In a current analysis, Web3 digital property agency Animoca Brands stated that tokenization of RWAs might unlock a $400 trillion traditional finance market.
Animoca researchers Andrew Ho and Ming Ruan stated the worldwide marketplace for non-public credit score, treasury debt, commodities, shares, various funds, and bonds represents an enormous runway for development.
“The estimated $400 trillion addressable TradFi market underscores the potential development runway for RWA tokenization,” they wrote.
Meanwhile, in accordance to the 2025 Skynet RWA Security Report, the marketplace for tokenized RWAs could grow to $16 trillion by 2030.
The put up SEC Grants DTCC Subsidiary No-Action Letter to Launch Tokenization Service appeared first on Cryptonews.
