Wall Street's market infrastructure has taken a decisive step towards tokenisation after the Depository Trust & Clearing Corporation confirmed that its subsidiary, the Depository Trust Company, received a no-action letter from the U.S. Securities and Exchange Commission authorising a new tokenisation service.
The approval allows DTC to tokenise certain DTC-custodied assets on pre-approved blockchains for an initial three-year period, while maintaining the same legal entitlements, investor protections and ownership rights as their traditional counterparts.
DTCC said the clearance represents an historic milestone that embeds tokenisation directly within systemically important market infrastructure rather than treating it as an experimental or peripheral technology.
“In an historic milestone, DTC received a no-action letter from the SEC to tokenize certain DTC-custodied assets,” DTCC said, adding that blockchain would help bridge traditional finance and decentralised systems.
The framework ensures that tokenised assets benefit from the same levels of resiliency, safety and soundness that underpin existing U.S. capital markets, addressing long-standing institutional concerns around custody and legal certainty.