Milestone! SEC approves DTCC to initiate stock tokenization trial, accelerating Wall Street on-chain transformation

2025-12-12 02:20:52

Abstract generation in progress

The SEC first approved DTCC to custody and confirm tokenized stocks and bonds on a blockchain, with a three-year experimental period.
(Background: What is xStocks tokenized stocks? How to trade? How Wall Street in the Solana ecosystem is changing the world)
(Additional background: Popular science | How to use “NAV Net Asset Value” to evaluate how much your crypto stocks are worth?)

The U.S. Securities and Exchange Commission (SEC) issued a “No Action Letter” to the Depository Trust & Clearing Corporation (DTCC), agreeing to its custody and confirmation of tokenized assets on specific blockchain networks for a three-year trial period. This approval symbolizes Wall Street’s core clearinghouse officially embracing blockchain technology, with the process of on-chain stocks, bonds, and even U.S. Treasuries expected to enter broader application.

SEC Commissioner Pierce stated in a statement:

Although the plan is a pilot project with operational restrictions, it marks an important step forward for the market’s move towards on-chain assets.

Regulatory green light is on

DTCC handles the vast majority of U.S. stock transaction settlements, and its participation signifies that traditional financial infrastructure is officially integrating blockchain into its operations. The trial covers tokenized stocks, corporate bonds, and U.S. Treasuries, demonstrating that “real-world assets” (RWA) have gained regulatory approval.

According to the letter, the SEC will not take enforcement action against DTCC during the experimental period, provided that the company complies with pre-set technical and risk management conditions. The operational results over the three years will serve as an important reference for future comprehensive digital asset regulations.

Insights from the three-year trial

If successful, the trial could shorten the traditional securities settlement process. Currently, stock settlement typically takes one to two business days; through blockchain ledgering and tokenization, it could theoretically advance to near real-time T+0, reducing counterparty risk and improving capital efficiency. For institutional investors, reducing capital lock-up days will directly impact leverage and liquidity management.

Furthermore, with DTCC leading as the central clearinghouse for U.S. stocks, it sets an example for other large financial institutions to test the waters. Once the costs, compliance, and operational feasibility are verified, more traditional assets could follow the same on-chain approach, promoting RWA market scale and infrastructure growth.

In summary, the SEC’s three-year on-chain custody trial for DTCC marks a new milestone in asset tokenization. The market will evaluate the practical benefits of blockchain in large-scale traditional asset clearing, and this step could determine whether RWA can move from concept to widespread adoption.

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