The 3-day wait to settle your stock trades is about to die, thanks to a new SEC approval you missed

The Depository Trust Company (DTC) received informal approval from SEC staff not to recommend enforcement action for operating a tokenization service on assets it already holds. This pilot, called DTCC Tokenization Services, will allow DTC participants to represent their security entitlements using tokens held in registered blockchain wallets, while the underlying securities remain registered to Cede & Co. The structure treats tokenization as an alternate recording method, not a change to the legal ownership framework. The initial rollout, anticipated for the second half of 2026, will be limited to DTC participants on an opt-in basis, covering highly liquid assets like Russell 1000 constituents, U.S. Treasuries, and certain index ETFs. Token transfers will be restricted to registered wallets, and DTC will maintain visibility via off-chain tracking systems. Crucially, tokenized entitlements will not carry collateral or settlement value for DTC's internal controls during this preliminary phase. The SEC staff position is time-limited (three years after launch) and subject to quarterly reporting, signaling a cautious path toward market digitization.

(Source：CryptoSlate)