Home / Business and Economy / SEC Approves DTCC's Landmark Tokenization Pilot
SEC Approves DTCC's Landmark Tokenization Pilot
13 Dec
Summary
- DTCC receives SEC clearance for a regulated tokenization service pilot.
- The service, starting in late 2026, will tokenize select traditional securities.
- Ethereum is a top contender to host DTCC's tokenized assets.
The U.S. Securities and Exchange Commission (SEC) has granted the Depository Trust & Clearing Corporation (DTCC) authorization to pilot a regulated tokenization service. This groundbreaking development is set to merge traditional finance (TradFi) with decentralized finance (DeFi), potentially benefiting various cryptocurrency assets.
The DTCC's subsidiary, The Depository Trust Company (DTC), received a No-Action Letter from the SEC, permitting it to tokenize real-world assets held in custody under existing securities laws. This pilot program is slated to commence in the second half of 2026, offering a three-year window for DTC to issue blockchain-based representations of select traditional securities.
These digital tokens will carry identical ownership rights and legal protections as their conventional counterparts. Initial assets eligible for tokenization include equities from the Russell 1000 index, major benchmark ETFs, and U.S. Treasury bills, notes, and bonds. Ethereum is widely considered a prime candidate to support this initiative, given its substantial current market share in tokenized real-world assets.
