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SEC Approves DTCC Plan to Tokenize U.S. Stocks, Bonds, and Treasuries

SEC Approves DTCC Plan to Tokenize U.S. Stocks, Bonds, and Treasuries

The SEC has authorized DTCC to run a limited Canton Network pilot in 2026, tokenizing US Treasuries while retaining asset records on its central ledger.

Summary

The SEC approved DTCC to conduct a limited pilot on the Canton Network in the first half of 2026, focusing on tokenizing U.S. Treasury holdings. Tokens will represent ownership, but underlying assets will remain recorded on DTCC’s central ledger. This pilot follows the regulator’s earlier three‑year no‑action letter permitting DTCC to tokenize select stocks, ETFs, and Treasuries on approved blockchains, aiming to improve settlement efficiency for real‑world assets. Canton Network and Digital Asset are key partners in this initiative.

Terms & Concepts
  • Tokenization: The process of converting ownership rights in an asset into digital tokens on a blockchain.
  • Real‑World Assets (RWAs): Physical or traditional financial assets represented digitally on a blockchain.
  • No‑Action Letter: A formal communication from a regulator stating it will not take enforcement action regarding a proposed activity.