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The U.S. Securities and Exchange Commission (SEC) has granted financial firm DTCC permission to launch a tokenization service. The approval came on Thursday via a so-called no-action letter to its subsidiary, the Depository Trust Company.
This allows DTCC to convert real financial assets custodied at DTC into digital tokens. The service will operate within a controlled environment. This is relevant for the crypto market, as major financial systems will now begin using blockchain technology.
Why This Approval is Drawing Significant Attention #
DTCC is a crucial link in the processing of stock trades worldwide. When an entity of this magnitude starts working with tokenization, major institutions take it seriously. It means the technology is no longer confined to small pilot projects. With this approval, tokenization gains a permanent place within existing financial markets.
In an historic milestone, DTC received a No‑Action Letter from the SEC to tokenize certain DTC‑custodied assets. By leveraging blockchain, DTCC aims to bridge TradFi and DeFi, advancing a more resilient, inclusive and efficient global financial system. https://t.co/yYNaHfvjcS pic.twitter.com/E4W47rWBIc — DTCC (@The_DTCC) December 11, 2025
Tokenization means converting a financial product into a digital token. That token represents the same rights as the original product—think of a stock, a fund, or a debt instrument. This form enables more efficient trading and greater possibilities for rapid transfer. For the market, it’s particularly interesting that this is happening within a strict legal framework.
What DTCC’s Tokenization Plans Entail #
With the new service, DTCC can convert traditional securities into digital representations. These tokens will be registered on systems that connect to blockchain technology. This allows existing market participants to work with digital assets within their current systems. Banks and asset managers thus get a way to work with tokenization without overhauling their entire infrastructure.
The focus is initially on institutional clients. They already use DTCC for settlement and risk management. By offering tokenization within that trusted environment, DTCC lowers the barrier for further digitalization. This allows large parties to work with digital structures without major changes.
Long-Term Implications for the Crypto Market #
For the crypto market, this means blockchain will be used more frequently within the traditional financial sector. Companies that provide the technical infrastructure and secure storage for digital products will therefore receive more attention.
In the coming period, the market will be watching closely for the first products to emerge through this tokenization service. Moves by other major financial players will also be closely monitored. Their choices will show how quickly traditional financial systems will adopt blockchain.