DTCC Secures SEC Nod to Tokenize Assets, Spurring Onchain Market Expansion

The U.S. Securities Market Takes a Major Step Toward Blockchain Integration

The U.S. securities market took a major step toward blockchain integration as the Depository Trust & Clearing Corporation (DTCC) received regulatory approval from the Securities and Exchange Commission (SEC) to tokenize certain assets. The move, facilitated by a no-action letter, allows DTCC to create digital representations of real-world securities on approved blockchains for three years according to reports. This development marks a critical milestone in the convergence of traditional finance and decentralized technologies as per analysis.

Coinbase and Bitget are also accelerating the adoption of tokenized securities. The crypto exchange is set to unveil its own tokenized U.S. equities and prediction markets on December 17, signaling a broader shift toward digital asset offerings. Meanwhile, Bitget Wallet expanded access to over 100 tokenized stocks and ETFs on the BNB Chain, enabling 80 million users to trade real-world assets onchain according to the announcement.

Tokenization has already gained traction, with trading volumes in digital securities rising sharply. Monthly transfer volume in tokenized equities increased by 32% in the last 30 days to $1.45 billion, according to rwa.xyz. Bitget Wallet reported a 152% increase in spot trading volume and a 1,918% rise in perpetual trading for tokenized stocks in November alone as detailed in the report.

How Markets Reacted

The DTCC approval has been widely welcomed by market participants and regulators. SEC Commissioner Hester Peirce described the initiative as a "significant incremental step in moving markets onchain," emphasizing the importance of innovation while maintaining investor protections. The move is seen as a sign of regulatory openness to blockchain-based financial infrastructure according to industry analysis.

Industry leaders have also voiced optimism. DTCC President and CEO Frank La Salla highlighted the potential for tokenization to enable 24/7 trading, collateral mobility, and programmable assets. "This will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era," he said according to the report. The DTCC plans a controlled rollout of its tokenization service in the second half of 2026 as reported.

What This Means for Investors

For institutional and retail investors, tokenization could offer faster settlement, lower transaction costs, and improved liquidity. DTCC's tokenized securities will mirror the legal rights and protections of their traditional counterparts, ensuring compliance with existing market rules according to Reuters analysis. This is expected to foster greater trust in the technology and encourage broader participation according to industry reports.

Startups and traditional financial institutions are also exploring the potential of tokenized assets. State Street and Galaxy plan to launch a tokenized liquidity fund in early 2026, leveraging stablecoins for real-time cash management on public blockchains. This product is designed to meet the growing demand for institutional-grade onchain solutions as announced.

As the market evolves, regulatory clarity will remain a key factor. The SEC's no-action letter framework provides temporary relief for experimentation but does not represent a permanent regulatory exemption. Firms participating in tokenization initiatives will need to comply with ongoing reporting requirements and demonstrate that they are managing risks appropriately according to regulatory guidance.

Risks to the Outlook

Despite the progress, challenges remain. While tokenization promises efficiency gains, skeptics caution that the underlying risks of lending and borrowing have not changed according to Bloomberg analysis. Investors and institutions must carefully evaluate the security, custody, and legal implications of tokenized assets before committing significant capital according to industry experts.

Regulatory alignment is also crucial. As different market participants experiment with tokenization structures, the SEC is likely to continue its iterative approach to oversight. Commissioner Peirce emphasized the importance of investor choice and regulatory flexibility at this early stage. Market participants will need to stay informed about evolving rules and adapt accordingly according to SEC guidance.