Opening
The Depository Trust & Clearing Corporation (DTCC) announced on January 27 (local time) a partnership with the Stellar Development Foundation (SDF) to tokenize real-world assets (RWAs) held by its subsidiary, the Depository Trust Company (DTC), on the Stellar public blockchain. The collaboration follows DTCC's receipt in December of a "no-action relief confirmation" from the U.S. Securities and Exchange Commission (SEC) authorizing the tokenization of specific DTC-custodied assets. DTCC and SDF expect DTC-based tokenized assets to become operational on the Stellar network during the first half of 2027, with eligible assets including Russell 1000 constituent stocks, major exchange-traded funds (ETFs), and U.S. Treasury bills and bonds. The initiative builds on DTCC's five decades of clearing and settlement infrastructure to expand the tokenized RWA market while maintaining the same investor protections and rights as traditional DTC-custodied assets.
Partnership Scope and Timeline
DTCC stated in its announcement that the partnership with SDF will focus on tokenizing DTC-custodied assets on the Stellar public blockchain. The organizations project that tokenized assets based on DTC custody will be available on the Stellar network by the first half of 2027. Target asset classes include stocks from the Russell 1000 index, major index ETFs, and U.S. Treasuries (T-bills and Treasury bonds).
Regulatory Foundation
In December, DTCC received a "no-action relief confirmation" from the SEC permitting the tokenization of certain DTC-custodied assets. This regulatory clearance forms the legal basis for the DTCC-Stellar collaboration.
Expected Operational Benefits
DTCC outlined several anticipated improvements from the tokenization initiative: faster settlement processes, enhanced asset mobility, extended trading hours, and reduced operational costs. The organization emphasized that tokenized assets will retain the same investor protections and legal rights as their traditional DTC-custodied counterparts.
Executive Statements
Brian Steele, DTCC's Head of Clearing and Securities Services, stated: "DTCC is focused on advancing tokenization in a safe, equitable, and scalable manner. Building on over 50 years of clearing and settlement experience, we will expand the real-world asset tokenization market."
Nadine Chakar, DTCC's Head of Digital Assets, explained the selection criteria: "Stellar's regulatory-friendly structure, high throughput performance, and low-cost architecture aligned with DTCC's standards. We plan to expand interoperability with multiple Layer 1 and Layer 2 networks in the future."
