The US Securities and Exchange Commission (SEC) has authorized the Depository Trust & Clearing Corporation (DTCC) to tokenize US securities, effectively allowing the plumbing of Wall Street to move onchain.
In a "no-action" letter issued yesterday, 11 Dec, the SEC gave the green light for the DTCC to launch a live, three-year program. This allows its subsidiary, the Depository Trust Company known as the DTC, to mint and burn blockchain-based tokens that represent security entitlements for assets it already holds in custody.
This is not a simulation. The DTCC processes quadrillions of dollars in securities transactions annually. This authorization moves tokenization from "innovation pilot" to operational reality for the world’s largest financial market infrastructure, with a rollout anticipated in the second half of 2026.
Institutional rails go live
The service allows the DTC to tokenize "highly liquid" assets, including the Russell 1000 Index, ETFs and US Treasury bills. These digital tokens will exist on pre-approved blockchains (L1 and L2 networks) but remain fully backed by the physical securities held in the DTC’s centralized vaults.
For institutional clients, this unlocks the holy grail of digital assets: programmable value. By using the DTCC’s "ComposerX" platform suite, participants can manage collateral and settlements with the speed of blockchain while retaining the legal certainty of the traditional US securities framework.
Bridging the liquidity gap
The move solves the biggest hurdle for institutional crypto adoption: the separation of liquidity pools. Until now, tokenized assets were often stranded on private ledgers with limited utility.
By authorizing the DTC to issue tokens that carry the same rights and investor protections as traditional assets, the SEC has effectively sanctioned a bridge between the $100tn traditional securities market and the digital asset economy. As DTCC President Frank La Salla noted, this "unifies liquidity" across the ecosystem, allowing traditional finance to finally tap into the efficiency of distributed ledger technology without regulatory fear.
