# SEC trading staff grants conditional no-action relief for DTC tokenization services pilot

> Trading and Markets staff provided conditional no-action relief for DTC to develop and launch a limited voluntary tokenization service for eligible security entitlements held by DTC participants.

- URL: https://riadefi.com/regulation/2025-12-11-sec-dtc-tokenization-services-no-action/
- Posture: Guidance
- Authorities: SEC Division of Trading and Markets
- Event date: 2025-12-11
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

Trading and Markets staff provided conditional no-action relief for DTC to develop and launch a limited voluntary tokenization service for eligible security entitlements held by DTC participants. The pilot is subject to asset, participant, blockchain, control, reporting, and time limits and does not broadly approve third-party tokenization models.

## Who it affects

- DTC participants, broker-dealers, custodians, transfer agents, and issuers
- Advisers evaluating tokenized securities and settlement providers

## What is still open

- Pilot adoption, eligible assets and chains, interoperability, finality, and legal treatment
- Whether the Commission will adopt durable rules available beyond DTC

## What it means for an advisor

- Distinguish a DTC-recorded tokenized entitlement from direct issuer-record ownership or synthetic exposure
- Diligence rights, records, wallet controls, transfer restrictions, settlement, corporate actions, and recovery procedures

## Previous interpretation

DTC did not have this staff relief for a live tokenized-entitlement service on supported blockchains.

## Sources

1. [No-Action Letter Relating to DTC’s Development of Tokenization Services](https://www.sec.gov/files/tm/no-action/dtc-nal-121125.pdf) · SEC Division of Trading and Markets · 2025-12-11


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.