SEC Clears DTCC to Tokenize Securities, Paving Way for Near‑Instant T+0 Settlement
The U.S. Securities and Exchange Commission issued a landmark no-action letter to the Depository Trust & Clearing Corporation (DTCC) in late December 2025 allowing approved public and private blockchains to be used for settlement and record-keeping of tokenized entitlements to traditional securities. Covered assets include Russell 1000 equities, major ETFs and U.S. Treasuries. The regulatory clearance effectively green-lights on-chain representation of these securities and enables a shift toward T+0 (near-instant) settlement, removing multi-day settlement friction. Real-world asset (RWA) tokenization reached about $19 billion in 2025; analysts forecast potential growth toward $100 billion by late 2026 given the new clarity. Institutional benefits cited include greater collateral velocity and the ability for banks and hedge funds to move tokenized equities and Treasuries across decentralized protocols while remaining compliant with securities law. Market relevance: this decision is framed as the missing institutional bridge for DeFi, likely to attract institutional capital into tokenized assets and increase demand for tokenization infrastructure and settlement rails.
Bullish
This SEC no-action letter materially reduces regulatory uncertainty for institutional tokenization of securities — a key barrier that has limited large-scale institutional capital flowing into on-chain real-world assets. By explicitly permitting approved blockchains for settlement and record-keeping of equities, ETFs and Treasuries, the decision accelerates migration toward T+0 settlement, which improves capital efficiency and collateral velocity. Historical parallels: regulatory clarity (for example, clear custody rules or ETF approvals) typically precedes substantial inflows from institutions and infrastructure buildout, producing bullish price action for related assets and service providers. Short-term impact: increased buying or partnerships among tokenization platforms, custody providers, and infrastructure tokens; volatility may rise as markets price in expected institutional demand. Long-term impact: structural increase in demand for tokenized assets and settlement rails, potential compression of intermediation fees, and higher liquidity for on-chain representations of traditional assets. Risks: implementation timelines, interoperability, and further rulemaking could delay effects; if adoption is slower than expected, the bullish impulse may be muted. Overall, the net effect supports a bullish outlook for projects and tokens tied to tokenization, custody, and settlement infrastructure.