The Depository Trust Company ( DTC ), a subsidiary of New York-based post-trade services provider Depository Trust & Clearing Corporation ( DTCC ), has received US regulatory go-ahead to tokenize real-world assets under its custody.

The new service, authorized through a no-action letter from the Securities and Exchange Commission ( SEC ), is expected to start in the second half of 2026.

The SEC authorization allows DTC to offer a tokenization service for DTC participants and their clients on pre-approved blockchains for three years. The company will have the ability to tokenize real-world assets, with the digital version having all the same entitlements, investor protections, and ownership rights as the asset in its traditional form. In addition, DTC promises to provide the same high level of resiliency, safety, and soundness as that of traditional markets. 

The authorization applies to a defined set of highly liquid assets, including the Russell 1000, which represents the top 1,000 publicly traded US companies by market cap, exchange-traded funds ( ETFs ) tracking major indices, as well as US Treasury bills, bonds, and notes.

“I want to thank the SEC for its trust in us. Tokenizing the US securities market has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access, and programmable assets, but this will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era,” says DTCC president and chief executive officer Frank La Salla. “We welcome this opportunity to further enable and innovate for the industry, our participants and their clients. We look forward to partnering across the industry to tokenize real-world assets safely and securely while advancing the future of finance for generations to come.” 

The company sees the SEC action as “a critical enabler” of its broader strategy to advance a secure, transparent, and interoperable digital asset ecosystem that leverages the full potential of blockchain technology.

“From the start, DTCC has been pioneering breakthrough technologies that redefine markets and safeguard their integrity. Our tokenization initiative will build upon that legacy and enable us to work collaboratively with industry participants to usher in the era of digital markets,” says Brian Steele, managing director, president of clearing and securities services, at DTCC. “In partnership with our clients and the broader market, we will tokenize securities with uncompromising security, sound legal footing and seamless interoperability, all backed by the resilience that has anchored traditional markets for decades.”  

The firm’s tokenization service is underpinned by its ComposerX suite of platforms, which will enable it to create a single pool of liquidity across the TradFi and DeFi ecosystems and deliver a more resilient, inclusive, cost-effective, and efficient financial system.

“Distributed ledger technology ( DLT ) has the power to reshape markets, and DTCC is championing this transformation through innovative actions and bold solutions,” says Nadine Chakar, managing director and head of digital assets at DTCC. “Our suite of DLT offerings will underpin DTCC’s tokenization service and, together with the industry, will drive development of a new digital asset ecosystem for all.”