🚨SEC Just Unlocked Tokenization at Market Scale 🚨
🇺🇸 (11 Dec) U.S. Securities and Exchange Commission and The Depository Trust & Clearing Corporation (DTCC) Statement on the Division of Trading and Market’s No-Action Letter NAL Related to DTC’s Development of Securities Tokenization Services
♦ The NAL authorizes DTC, under U.S. federal securities laws, to offer a new service to tokenize real-world assets that are custodied at DTC.
♦ The service will operate in a controlled production environment and is expected to begin rolling out in the second half of 2026.
♦ The authorization allows DTC to offer the tokenization service for 3 years on pre-approved Layer 1 and Layer 2 blockchains.
♦ Under the NAL, DTC can tokenize real-world assets where the digital representation carries the same entitlements, investor protections, and ownership rights as the traditional asset.
♦ The authorization applies to a defined set of highly liquid assets, including the Russell 1000, ETFs tracking major indices, and U.S. Treasury bills, bonds, and notes.
♦ The NAL is significant because it allows DTC to launch the service more quickly than would otherwise be possible, subject to specific limitations and representations.
♦ The initiative is positioned as a core component of DTCC’s broader strategy to build a secure, transparent, and interoperable digital asset ecosystem.
♦ DTC’s tokenization service will be supported by DTCC’s ComposerX platform suite, enabling a single pool of liquidity across traditional finance TradFi and decentralized finance DeFi.
♦ The approach aims to deliver a more resilient, inclusive, cost-effective, and efficient global financial system.
♦ DTCC highlighted that it has spent nearly a decade exploring and testing distributed ledger technology with participants, peers, and technology providers.
♦ Key benefits identified include cross-border and round-the-clock asset mobility, more direct participant access, and programmability through smart contracts.
♦ DTCC will provide additional details on participant onboarding, wallet registration, and blockchain approval processes in the coming months.
Source: SEC Website