The Depository Trust & Clearing Corporation (DTCC) has received a no-action letter from the U.S. Securities and Exchange Commission (SEC) that allows it to test a new service for creating tokenized versions of assets it already holds.

On Dec. 11, the SEC approved a three-year pilot for certain Layer 1 (L1) and Layer 2 (L2) blockchains, starting in the second half of 2026. The program covers highly liquid assets, including stocks in the Russell 1000 index (the 1,000 largest publicly traded U.S. companies), major index-tracking exchange-traded funds (ETFs), and U.S. Treasury bills, notes and bonds.

According to a press release viewed by The Defiant, the tokenized versions must keep the same rights and protections as the original securities. The no-action letter also allows the Depository Trust Company (DTC), a subsidiary of the DTCC, to start the service more quickly than usual, provided it follows certain rules.

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