The U.S. Securities and Exchange Commission (SEC) has issued a historic No-Action Letter to The Depository Trust & Clearing Corporation (DTCC), allowing its subsidiary, The Depository Trust Company (DTC), to conduct a three-year pilot program for recording securities on select blockchains. This marks the first time the backbone of the American securities market—which processed transactions worth $3.7 quadrillion in 2024—has been permitted to operate a blockchain-based recordkeeping system.
The relief, granted on December 11, 2025, waives several standard regulatory requirements, including key SEC rules governing market infrastructure reliability (Rule 19b-4 filings) and specific clearing-agency standards. It permits DTC to mint and burn blockchain-based "tokenized entitlements" that mirror securities already held in its custody, without triggering certain enforcement actions.
Under the pilot, DTCC participants can elect to convert their traditional book-entry entitlements into tokenized forms. Eligible securities include constituents of the Russell 1000 index, U.S. Treasurys (bills, bonds, notes), and major index-tracking ETFs. The service is scheduled to launch in the second half of 2026.
The operational model involves DTCC debiting securities from its centralized ledger and crediting them to a new digital omnibus account upon a participant's request. A corresponding token is then minted into a "registered" blockchain wallet controlled by the participant. The system operates within a permissioned framework: tokens can only move between wallets registered with DTCC, and the firm retains a "root wallet" with the authority to reverse transactions in cases of error or misconduct.
DTCC is required to file detailed quarterly reports covering the number of participants, the value of tokenized entitlements, the blockchains used or rejected, outage data, and any instances where reversal authority was exercised. The company stated the initiative aims to "bridge TradFi and DeFi" and create a "more resilient, inclusive, and efficient global financial system."
Frank La Salla, DTCC's President & CEO, highlighted the potential for transformational benefits like collateral mobility, new trading modalities, 24/7 market access, and programmable assets. Nadine Chakar, DTCC's Head of Digital Assets, noted the move champions the market-reshaping power of Distributed Ledger Technology (DLT).
