Overview
- The SEC issued a conditional no-action letter allowing DTC, a DTCC subsidiary, to mint and burn blockchain tokens that mirror existing book-entry security entitlements for opt-in participants.
- The pilot is confined to highly liquid assets, including Russell 1000 equities, major index-tracking ETFs, and U.S. Treasurys, on pre-approved layer 1 and layer 2 networks to be disclosed by DTCC.
- Token movements are limited to DTCC-registered wallets under a permissioned model, with a root-wallet authority enabling reversals or corrections in defined scenarios.
- DTCC plans phased proofs of concept and limited live pilots in early 2026, with broader rollout targeted for the second half of 2026 under a three-year production window.
- Tokenized entitlements retain the same legal rights as traditional holdings but initially carry no collateral or settlement value within DTC risk controls, and DTCC must submit detailed quarterly reports as the staff relief remains fact-specific and revocable.