DTCC Granted SEC Clearance to Pilot Tokenization of U.S. Securities

The Depository Trust Company received a No Action Letter from the U.S. Securities and Exchange Commission dated Dec. 11, 2025, authorizing a controlled, limited production pilot to tokenize selected securities held in DTC custody. The three year authorization permits DTC to offer blockchain based representations of traditional securities to DTC Participants and their clients while maintaining that the digital tokens will carry the same ownership rights, investor protections, and legal entitlements as the underlying assets, according to DTCC materials and multiple industry reports.

Under the terms published by DTCC and summarized in its Businesswire release, the pilot will operate across pre approved blockchains, including both Layer 1 and Layer 2 providers, in what DTCC describes as a limited production environment. The firm said it will support several compatible chains at launch and that it will publish the full list of eligible networks and technical standards in the coming months. DTC will set onboarding requirements, including wallet registration, and an approval process for participating networks. A Participant will initiate a conversion order to convert traditional assets into tokenized form and deliver them to a registered digital wallet, and Participants may instruct DTC to convert tokens back into traditional DTC account form.

The program is being rolled out as part of a broader DTCC product suite that includes a ComposerX offering and a Tokenization Hub, positioning the central securities depository to influence standards for on chain recordkeeping. DTCC’s scale underscores the potential market impact. The organization processed transactions worth about $3 quadrillion in 2023, a volume that highlights how any technical or operational standards it sets could reverberate through global markets.

Market commentary in trade and crypto press framed the SEC clearance as a significant step toward bridging traditional finance and decentralized finance, though such characterizations are distinct from the regulatory facts in the authorization. Reporting outlets including TradingView and Yahoo Finance emphasized the pilot length and legal parity between tokenized and traditional instruments. Crypto focused outlets noted possible knock on effects for crypto markets if tokenization expands, but the pilot itself will be limited and closely overseen.

Several key details remain unresolved. DTCC has not yet published the definitive list of eligible chains or the full technical standards for token issuance and custody. Exact participant onboarding criteria, wallet rules, and operational playbooks for conversion and settlement are still to be disclosed. The No Action Letter is available for review, but the public text does not yet specify the metrics or reporting cadence the SEC will use to monitor the pilot over the three year period.

Policy implications are significant. The NAL represents a regulatory tolerance for experimentation within federal securities law while preserving investor protections, but it is not precedent free. How the SEC monitors operational resilience, interoperability across networks, and systemic risk will determine whether tokenization remains a niche pilot or a broader structural shift in post trade markets. For now, the move is a measured step toward modernizing custody and settlement, with broader implications to be revealed as DTCC publishes technical standards and onboarding rules in the months ahead.