The US Securities and Exchange Commission has given a subsidiary of the Depository Trust and Clearing Corporation (DTCC) a highly coveted “no-action” letter, allowing it to offer a new securities market tokenization service.
The DTCC said on Thursday that its subsidiary, the Depository Trust Company (DTC), was given the go-ahead to launch “a new service to tokenize real-world, DTC-custodied assets in a controlled production environment.”
The DTC will tokenize a “set of highly liquid assets” including the Russell 1000 index, exchange-traded funds tracking major indexes, US Treasury bills, bonds and notes, with the service expected to roll out in the second half of 2026.
The DTCC runs crucial market infrastructure, providing clearing, settlement and trading of US securities. The SEC no-action letter gives it an important sign-off on its plan, confirming that the agency won’t take enforcement action if its proposed product operates as described.
“I want to thank the SEC for its trust in us,” said DTCC CEO Frank La Salla. “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.”
In an historic milestone, DTC received a No‐Action Letter from the SEC to tokenize certain DTC‐custodied assets. By leveraging blockchain, DTCC aims to bridge TradFi and DeFi, advancing a more resilient, inclusive and efficient global financial system. https://t.co/yYNaHfvjcS pic.twitter.com/E4W47rWBIc
— DTCC (@The_DTCC) December 11, 2025
SEC clearing up gray areas with no-action letters
The DTCC said the no-action letter allows its subsidiary “to offer a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years.”
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“DTC 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,” it said.
The SEC rarely gives no-action letters, but SEC chair Paul Atkins, a former crypto lobbyist, has warmed to the industry and has outlined how crypto products fall under his agency’s regime.
Over the past few months, the SEC has handed out two no-action letters to decentralized physical infrastructure network (DePIN) crypto projects.
In late September, the SEC also issued a no-action letter that cleared the way for investment advisers to use state trust companies as crypto custodians.
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