The US Securities and Exchange Commission (SEC) implicitly granted approval for some stocks and other securities to be tokenized and traded on blockchains.
Depository Trust & Clearing Corp. (DTCC), the world’s largest securities settlement system, said Thursday that a subsidiary, Depository Trust Co. (DTC), has received a no-action letter allowing it to offer a tokenization service on approved blockchains for three years.
Tokenization is the process of representing stocks, bonds, and other real-world assets (RWAs) as digital tokens that can be bought, sold, and traded on blockchains, with the goal of achieving greater efficiency and faster settlement.
Some of the biggest names in traditional finance (TradFi), including JPMorgan and BlackRock, have developed projects in this area, demonstrating the institutional investment potential that blockchain finance can attract.
The Depository Trust Co. authorization applies to components of the Russell 1000 index, exchange-traded funds (ETFs) that track major indices, and U.S. Treasury bonds. It plans to begin rolling out the service in the first half of 2026.
A no-action letter is a formal agency response to a company indicating that the regulator will not take any enforcement action for a proposed activity.
