DTCC Receives SEC Green Light to Tokenize Stocks and Bonds

Source: DefiPlanet Original Title: DTCC Receives SEC Green Light to Tokenize Stocks and Bonds Original Link: https://defi-planet.com/2025/12/dtcc-receives-sec-green-light-to-tokenize-stocks-and-bonds/

Quick Breakdown

• The Depository Trust & Clearing Corporation (DTCC) secures SEC no-action relief to offer tokenization services for stocks, ETFs, bonds, and US Treasurys starting next year.
• This approval marks a pivotal step for traditional finance institutions to integrate blockchain, potentially unlocking trillions in tokenized real-world assets (RWAs).
• DTCC processes $2 quadrillion annually, positioning it to bridge legacy markets with distributed ledger technology under regulatory oversight.

SEC Clearance for Tokenization

The DTCC, which clears and settles the vast majority of US securities transactions, announced it received a no-action letter from the US Securities and Exchange Commission (SEC). This clearance allows the firm to deploy a tokenized deposit solution without immediate enforcement action.

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 traditional finance and DeFi, advancing a more resilient, inclusive and efficient global financial system.

Targeted for a 2026 rollout, the platform will enable institutions to issue and manage digital tokens representing equities, fixed-income products, and government debt on permissioned blockchains. DTCC emphasized compliance with existing securities laws, including investor protections and anti-money laundering rules. The move follows pilot programs testing tokenization’s efficiency gains, such as instant settlement and reduced counterparty risk.

RWA Market Implications

Industry observers view this as a watershed moment for real-world assets (RWAs), in which assets such as bonds and stocks are converted into blockchain-native tokens. DTCC’s infrastructure handles over 100 million transactions daily, so its entry could standardize tokenized markets and attract banks wary of standalone crypto platforms.

CEO Frank La Salla stated the initiative aims to modernize post-trade processes while maintaining market stability. This aligns with broader US regulatory shifts, which has signalled support for crypto innovation.

Tokenization Unlocks Efficiency for Wall Street

Tokenization promises 24/7 trading, fractional ownership, and programmable assets, addressing pain points in legacy clearing systems that take T+1 or longer to settle. DTCC plans to use enterprise-grade networks like those from Hyperledger or similar, ensuring interoperability with public chains where feasible. Early adopters could include asset managers handling mutual funds or pension portfolios seeking yield through tokenized Treasurys.

This development echoes recent coverage of tokenized stocks expansion in Europe and crypto trading launches in the US, highlighting global convergence of traditional finance and blockchain. Risks remain, including smart contract vulnerabilities and oracle dependencies, but SEC oversight mitigates systemic threats. Major financial institutions already experiment with similar tech, suggesting competitive pressure will accelerate adoption.