On 27 May 2026, the Depository Trust and Clearing Corporation announced that its forthcoming DTC tokenization service will connect to the Stellar public blockchain, advancing a multi-chain settlement strategy for tokenized securities held in DTC custody. The announcement follows the SEC's December 2025 no-action letter permitting DTC to offer the tokenization service, and the convening of more than 50 financial firms to drive adoption. Initial tokenized security trades are targeted for July 2026, with a full commercial launch planned for October 2026.
The DTC tokenization service operates under DTC's rulebook as a registered clearing agency under section 17A of the Securities Exchange Act of 1934. The December 2025 SEC no-action letter, issued by the Division of Trading and Markets, confirms that staff will not recommend enforcement action against DTC for operating the service within stated parameters. The service issues on-chain tokens representing positions in DTC-custodied securities, creating a parallel blockchain record of DTC book-entry positions without transferring legal ownership. Connecting to Stellar extends this mechanism to Stellar-native market participants and liquidity.
Broker-dealers, custodian banks, asset managers, and other DTC participant firms may use the tokenization service to create and transfer on-chain representations of securities held at DTC. The Stellar integration gives participant firms access to Stellar-native liquidity and interoperability with Stellar-based issuers and tokenization platforms. The phased timeline gives financial intermediaries until July 2026 to prepare for initial trade participation and until October 2026 for full commercial deployment.
The on-chain tokens represent DTC book-entry positions and do not displace DTC's role as central securities depository. The December 2025 no-action letter does not address the securities law treatment of on-chain tokens for broker-dealer registration, alternative trading system obligations, or customer protection rules under Rule 15c3-3. Firms operating independent tokenization platforms on other blockchains are not required to interoperate with the DTC service. Further SEC guidance on the regulatory characterization of tokenized security positions is expected.
Licentium advises financial institutions, exchanges, and digital asset firms on the regulatory treatment of tokenized securities and the compliance requirements for blockchain-based settlement infrastructure. Our partner network includes specialists in SEC regulatory engagement, DTC membership obligations, and alternative trading system legal analysis. Work we undertake includes: tokenized securities regulatory analysis, clearing agency compliance review, digital asset custody legal assessment, and SEC no-action letter and exemptive relief processes.