Tokenized Stocks on Blockchain: SEC Gives DTCC the Green Light for Digital Asset Custody

The U.S. Securities and Exchange Commission has issued a no-action letter authorizing the Depository Trust & Clearing Corporation to hold and recognize tokenized securities and real-world assets directly on blockchain networks. This regulatory approval represents a significant milestone in bringing traditional financial infrastructure into the digital asset ecosystem.

What Changed

As the backbone of U.S. equity settlement, DTCC received clearance to offer tokenization services across pre-approved blockchain platforms for the next three years. The move allows the organization to expand its record-keeping functions to the blockchain while maintaining its core role in custody and clearance operations. Notably, DTCC’s subsidiary—Depository Trust Co., which currently safeguards most U.S. listed securities and fixed income instruments—will be at the forefront of this initiative.

Regulatory Perspective

SEC Commissioner Hester Peirce emphasized the importance of this development despite its limitations. “While the program remains in pilot mode with operational guardrails in place, this represents a crucial transition point for the financial market’s move toward blockchain infrastructure,” she noted. Her stance reflects growing regulatory openness toward institutional-grade digital asset solutions, provided they maintain proper safeguards.

Implementation Timeline

According to Michael Winnike, Global Head of Strategy and Market Solutions for Clearing and Securities Services at DTCC, the organization plans to introduce these tokenization capabilities starting in the latter half of next year. The phased rollout will allow DTCC to refine its processes while maintaining the security and efficiency standards the institution is known for.

Industry Implications

This approval signals institutional finance’s willingness to embrace blockchain infrastructure for critical market functions. As DTCC moves forward with its digital asset custody framework, other financial infrastructure providers will likely follow, accelerating the broader adoption of tokenized securities in mainstream markets.