SEC Green-Lights DTCC to Custody Tokenized Securities and RWA Assets On-Chain

The U.S. Securities and Exchange Commission has issued a no-action letter authorizing the Depository Trust & Clearing Corporation to serve as a custodian for tokenized equities and real-world assets (RWA) on blockchain networks. According to Bloomberg, this regulatory clearance represents a watershed moment for the institutional adoption of on-chain settlement infrastructure.

What This Approval Means

The decision opens pathways for DTCC—a foundational clearinghouse serving the American equities and fixed income markets—to expand its custody and settlement operations into tokenized environments. For the next three years, DTCC is authorized to offer tokenization services across pre-approved blockchain platforms, fundamentally bridging traditional securities infrastructure with decentralized ledger technology.

SEC Commissioner Hester Peirce underscored the significance of this development in recent remarks, noting: “While the initiative remains experimental and operates within defined operational guardrails, this marks a pivotal transition for financial markets moving toward on-chain infrastructure.” Her statement reflects the regulatory body’s cautious optimism regarding blockchain’s role in modernizing securities settlement.

DTCC’s Expansion Plans

Michael Winnike, who oversees Global Strategy and Market Solutions for DTCC’s clearing and securities division, revealed that the company intends to migrate its record-keeping functions to blockchain alongside the custody framework. This dual expansion signals DTCC’s commitment to comprehensive blockchain integration rather than isolated pilot testing.

The Depository Trust Co., DTCC’s custody subsidiary, currently maintains a massive portfolio of liquid securities for institutional participants across U.S. markets. The tokenization initiative aims to replicate and enhance these custodial capabilities in a blockchain environment, reducing settlement friction and expanding market accessibility.

Timeline for Launch

DTCC projects a rollout of its tokenization services in H2 of the following year, providing the organization with adequate runway for infrastructure development and regulatory coordination. This measured timeline reflects both the technical complexity of integrating legacy financial systems with blockchain networks and the need for careful operational validation before full deployment.