SEC issues no-action letter allowing DTC to tokenize securities

DTCC

The SEC's Division of Trading and Markets issued a no-action letter authorizing DTC to offer a tokenization service for DTC-custodied assets, including highly liquid securities such as Russell 1000 equities, Treasury securities, and index ETFs. The letter allows a three-year pilot program with launch planned for H2 2026.

• No-action letter permits DTC tokenization pilot without additional SEC rule changes
• Covers Treasury securities, Russell 1000 stocks, and certain index-tracking ETFs
• Three-year pilot expires if not launched by December 2028
• Tokenized assets maintain all protections and entitlements of traditional securities