DTC, a subsidiary of DTCC, has received a No-Action Letter from the Securities and Exchange Commission to offer, under federal securities laws and regulations, a new service to tokenise real-world, DTC-custodied assets in a controlled production environment. DTC anticipates beginning to roll out the service in the second half of 2026. The No-Action Letter authorises DTC to offer a tokenisation service for DTC participants and their clients on pre-approved blockchains for three years. Under the NAL, DTC will have the ability to tokenise 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 will provide the same levels of resiliency, safety and soundness as that of traditional markets.
The authorisation applies to a defined set of highly liquid assets, including the Russell 1000, which represents the 1,000 largest publicly traded U.S. companies by market cap, as well as ETFs tracking major indices and U.S. Treasury bills, bonds and notes. DTC participants and their clients will be able to take advantage of DTC’s tokenisation service, underpinned by its ComposerX suite of platforms. This will enable DTC 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.