The US Securities and Exchange Commission has given a key green light to the Depository Trust and Clearing Corporation’s (DTCC) push into blockchain-based markets.
Key Takeaways:
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The SEC granted DTC a rare no-action letter, clearing the way for tokenizing major US market assets.
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The tokenization service will launch in late 2026 and run on pre-approved blockchains for three years.
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The move signals a broader regulatory shift as the SEC shows greater openness to blockchain-based financial infrastructure.
On Thursday, the DTCC confirmed that its subsidiary, the Depository Trust Company (DTC), received a rare “no-action” letter that allows it to begin tokenizing traditional securities in a controlled production setting.
Under the approval, the DTC plans to tokenize a basket of highly liquid instruments, including components of the Russell 1000 index, major index-tracking ETFs, and US Treasury bills, notes, and bonds.
The service is scheduled for launch in the second half of 2026 and is designed to operate on pre-approved blockchains for a period of three years.
The DTCC, which underpins much of the US securities market through its clearing and settlement operations, said the no-action letter confirms the agency will not pursue enforcement if the program is carried out as proposed.
Market observers view the decision as a significant regulatory signal, as no-action letters are uncommon and typically reserved for projects with clear safeguards.
DTCC CEO Frank La Salla welcomed the move, saying the tokenization effort could reshape how securities move across the financial system.
He pointed to potential improvements such as faster collateral mobility, continuous market access, and new trading mechanisms enabled by programmable assets.
According to the company, tokenized versions of these assets will carry the same ownership rights, investor protections, and entitlements as their traditional counterparts, providing a bridge between legacy market structure and emerging blockchain rails.
The service will be available to DTC participants and their clients.
The SEC has taken a noticeably more open stance toward blockchain initiatives over the past year.
Two decentralized physical infrastructure network (DePIN) projects received similar no-action treatment, and in late September, the agency cleared investment advisers to work with state trust companies serving as crypto custodians.
In August, the agency issued a similar letter to Double Zero, surprising many in the industry and fueling optimism that the SEC, now led by Chair Paul Atkins, is taking a more measured approach after years of tension under former chair Gary Gensler.
On Monday, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s venture arm SC Ventures, rolled out a new tokenized gold investment fund in Singapore, bringing one of the world’s oldest safe-haven assets onto digital rails.
The fund, launched in partnership with FundBridge Capital, allows professional investors to gain exposure to gold through blockchain-based tokens issued on Libeara’s ledger.
In a recent research, Web3 digital property firm Animoca Brands said that tokenization of RWAs could unlock a $400 trillion traditional finance market.
Animoca researchers Andrew Ho and Ming Ruan said the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents a vast runway for growth.
“The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” they wrote.
Meanwhile, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs could grow to $16 trillion by 2030.
Read original story SEC Grants DTCC Subsidiary No-Action Letter to Launch Tokenization Service by Amin Ayan at Cryptonews.com