DTCC gains SEC approval to tokenize U.S. securities on Stellar's public blockchain, shortening settlement from days to minutes by mid-2027.
The Depository Trust & Clearing Corporation, which custodies $114 trillion in securities globally, won SEC approval in December 2025 to tokenize DTC-custodied assets on Stellar. The service launches in two phases: pilot in late 2026, Stellar connectivity in H1 2027. Tokenized positions settle 24/7 without days-long delays and carry identical investor protections to traditional holdings—legal ownership remains with DTC, tokens act as settlement instructions on its ledger. This marks a watershed for institutional tokenization. Russell 1000 stocks, index ETFs, and U.S. Treasuries will move on-chain within the same regulatory perimeter that governs $4.7 quadrillion in annual securities transactions. The No-Action Letter runs three years with quarterly SEC reporting, a supervised experiment that answers how tokenization fits existing securities law.
