DTCC is boldly stepping towards the financial future. More than 1,000 Russell 1000 equities, significant ETFs, and U.S. Treasuries will be added to the blockchain during its recently SEC-approved three-year trial program, which will begin in 2026.
The change might enable round-the-clock trading, reduce settlement from T+1 to almost instantaneous, and update Wall Street’s asset movement process.
DTCC, which processes more than $2 quadrillion worth of securities annually, will now submit quarterly reports to the SEC as it investigates what might be the next major change in international markets.
The U.S. Securities and Exchange Commission (SEC) issued a formal no-action letter to its subsidiary, the Depository Trust Company (DTC), giving the Depository Trust & Clearing Corporation (DTCC) a significant regulatory boost.
This certification represents a significant advancement in regulated digital finance by enabling DTCC to introduce a new blockchain-based tokenisation service for U.S. securities.
The DTC may proceed with a restricted three-year tokenisation experiment starting in the second half of 2026 under the SEC’s no-action recommendation. The service will concentrate on highly traded and liquid assets, including major ETF products, U.S. Treasuries, and components of the Russell 1000 index.
These assets will be transformed into safe, blockchain-based “tokenised entitlements”, providing market players with a new method of ownership transfer and management.
Participants will be able to convert their existing book-entry securities into blockchain tokens through the DTCC tokenisation service while maintaining all current investor safeguards.
Without upsetting the established market structure, this hybrid model seeks to provide the advantages of blockchain, including quicker settlement, longer trading hours, increased transparency, and operational effectiveness.
The DTCC will provide the SEC with quarterly reports on important information as part of the pilot, such as the value of tokenised assets and the blockchains utilised.
Only pre-approved blockchains will be used by the initiative, guaranteeing complete regulatory oversight.
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