Staff in the U.S. Securities and Exchange Commission’s Division of Trading and Markets issued a no-action letter to The Depository Trust Company (DTC) covering DTC’s development and launch of a preliminary version of a voluntary securities tokenization program on supported blockchains that meet DTC’s technology standards. The program is designed to enable the tokenization of security entitlements to certain eligible securities held by DTC participants through DTC. Participants with registered wallets would be able to transfer tokenized entitlements directly to the registered wallet of another DTC participant, with DTC’s software system tracking transfers to reflect tokenized entitlements in DTC’s official books and records. Commissioner Hester M. Peirce described the initiative as a pilot with operational limitations and noted that other market participants, including issuers, are experimenting with alternative tokenization structures that may raise different regulatory considerations.
U.S. Securities & Exchange Commission 2025-12-11
U.S. Securities and Exchange Commission staff issues no-action letter to DTC for pilot securities tokenization services
The SEC's Division of Trading and Markets issued a no-action letter to The Depository Trust Company (DTC) for a preliminary voluntary securities tokenization program on supported blockchains. This program allows DTC participants to tokenize and transfer security entitlements via registered wallets, with DTC tracking these transfers. Commissioner Hester M. Peirce noted the initiative's pilot nature and acknowledged other market participants exploring different tokenization structures.