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DTCC gets green light to offer blockchain-based securities service

BY Reuters | CORPORATE | 12/11/25 05:08 PM EST

By Hannah Lang

Dec 11 (Reuters) - A subsidiary of the Depository Trust & Clearing Corporation has received a "no action" letter from the U.S. Securities and Exchange Commission to offer a service to tokenize stocks, exchange-traded funds and bonds, which the company plans to roll out next year.

Cryptocurrency proponents say tokenized shares - blockchain-based instruments that track traditional equities - could revolutionize stock markets by allowing shares to be traded 24/7 and settled instantly, boosting liquidity and reducing transaction costs.

Under the "no action" letter from the SEC, the Depository Trust Company (DTC) will be able to offer its tokenization service for three years across a number of blockchains. The company said it would release more information about the offering in the coming months. (Reporting by Hannah Lang in New York)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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