Regulatory Compliance

US capital markets edge towards on‑chain tokenisation with regulatory green light and institutional innovation

Saturday, 13 December 2025 9:29AM UTC

The US securities regulator has approved a landmark move by the DTCC to tokenize real-world assets, signalling a shift towards a blockchain-based future for capital markets, supported by evolving regulatory frameworks and major industry players.

The US capital markets have taken a decisive step towards an on‑chain future after the Securities and Exchange Commission issued a No‑Action Letter authorising the Depository Trust & Clearing Corporation’s subsidiary, The Depository Trust Company (DTC), to offer a service tokenising DTC‑custodied real‑world assets. According to the original report from DTCC, the service , expected in the second half of 2026 , will cover highly liquid instruments including the Russell 1000, major index ETFs and US Treasury bills, notes and bonds, and will carry the same entitlements and investor protections as their traditional counterparts. ^[1]^[2]

The regulatory green light is significant because the DTCC is the operating system of US capital markets, custodying assets that collectively represent more than $100 trillion and processing quadrillions of dollars in transactions annually. Industry commentary notes the DTCC’s stated “ultimate aspiration” is to bring the entire depository on‑chain, a move that could materially shift settlement, custody and intermediation models. The DTCC plans to use a private AppChain built on Hyperledger Besu with a stated goal of interoperability across traditional finance and decentralized ecosystems. ^[1]^[2]

That institutional momentum is being matched by parallel regulatory loosening. The Commodity Futures Trading Commission has launched a digital assets pilot permitting designated digital assets , including Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC) , to be used as margin collateral by qualified Futures Commission Merchants. The CFTC also withdrew Staff Advisory 20‑34, removing a prior restriction that forced digital asset holders to convert tokens to cash before hedging, and issued guidance on custody, valuation and risk management for tokenised collateral. The move is intended to narrow the operational gap between 24/7 crypto markets and traditional, weekday‑only banking hours. ^[3]^[4]^[5]^[6]^[7]

Market participants are already putting the new playbook into practice. JPMorgan arranged an on‑chain US commercial paper issuance for Galaxy Digital on the Solana public blockchain, creating an on‑chain USCP token and handling delivery‑versus‑payment settlement while Coinbase and Franklin Templeton provided custody and purchase services. State Street, meanwhile, is collaborating with Galaxy Digital to launch SWEEP , a State Street Galaxy Onchain Liquidity Sweep Fund , on Solana in early 2026, with Ondo Finance committing capital through existing vehicles. These deals demonstrate how a global bank, institutional buyers and public blockchains can be combined into a single on‑chain settlement flow. ^[1]

Regulators and firms frame these developments as part of a wider re‑writing of market structures. SEC Chair Paul Atkins has sought to clarify digital asset taxonomy and to create a temporary regulatory “sandbox” for issuers under an Innovation Exemption due to begin in January 2026. “Under my leadership, SEC is prioritizing innovation and embracing new technologies to enable this on‑chain future,” Atkins said, positioning the SEC to oversee tokenised securities while other agencies address commodities and network tokens. The policy push aims to unlock a much larger market: tokenised real‑world assets are measured in trillions in addressable opportunity versus roughly $36bn in tokenised RWA today. ^[1]

The combined regulatory and institutional changes also intersect with macro policy. The Fed has recently cut the interest rate paid on bank reserves to 3.65% and is expanding its balance sheet with short‑term Treasury purchases, effectively adding liquidity to the banking system , a dynamic market participants describe as a strong macro tailwind for crypto by easing financial conditions and supporting asset prices. Those policy choices, together with the DTCC and CFTC moves, are closing technical and regulatory gaps that previously pushed institutional activity offshore. ^[1]

Despite the momentum, important frictions remain. The CFTC pilot eases collateral rules, but the operational reality of 24/7 markets means banks cannot yet move dollar balances on weekends, leaving exposure if crypto prices gap outside banking hours; industry proposals for tokenised Treasury collateral and round‑the‑clock stablecoins are being evaluated as potential fixes. Likewise, the DTCC’s use of a permissioned AppChain emphasises privacy and compliance, and the industry will be watching how legacy systems integrate with public chains such as Solana and how interoperability and regulatory oversight are maintained at scale. ^[1]^[2]^[3]

Taken together, these developments mark a shift from proof‑of‑concept to practical implementation: major custodians and banks are testing public chains and stablecoins within regulated frameworks, regulators are clarifying permissible collateral and sandbox pathways, and market plumbing is being rebuilt to compress issuance, custody and settlement into a single flow. The coming months , including DTCC’s planned deployment in 2026 and the SEC’s Innovation Exemption launch in January 2026 , will be a critical test of whether tokenisation can move from pilot to pervasive infrastructure for capital markets. ^[1]^[2]^[3]

📌 Reference Map:

##Reference Map:

^[1] (51 Insights) - Paragraph 1, Paragraph 2, Paragraph 4, Paragraph 5, Paragraph 6, Paragraph 7, Paragraph 8
^[2] (DTCC press release) - Paragraph 1, Paragraph 2, Paragraph 8
^[3] (CFTC press release) - Paragraph 3, Paragraph 7, Paragraph 8
^[4] (CFTC press release) - Paragraph 3
^[5] (CFTC press release) - Paragraph 3
^[6] (CFTC press release) - Paragraph 3
^[7] (CFTC press release) - Paragraph 3

Source: Noah Wire Services

More on this

https://www.51insights.xyz/p/157-the-fed-is-bullish - Please view link - unable to able to access data
https://www.dtcc.com/news/2025/december/11/paving-the-way-to-tokenized-dtc-custodied-assets - The Depository Trust & Clearing Corporation (DTCC) has received a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), authorising its subsidiary, The Depository Trust Company (DTC), to offer a new service for tokenising real-world, DTC-custodied assets. This service is expected to begin in the second half of 2026 and aims to bring U.S. capital markets on-chain, providing 24/7 access and connectivity to the expanding blockchain ecosystem. The tokenisation will cover highly liquid assets, including the Russell 1000, major index ETFs, and U.S. Treasury bills, bonds, and notes. The digital representations will carry the same entitlements, investor protections, and ownership rights as their traditional counterparts. This initiative marks a significant milestone in the adoption of digital assets within the financial industry. [Source](https://www.dtcc.com/news/2025/december/11/paving-the-way-to-tokenized-dtc-custodied-assets)
https://www.cftc.gov/PressRoom/PressReleases/9146-25 - The Commodity Futures Trading Commission (CFTC) has launched a digital assets pilot program, allowing certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), to be used as collateral in derivatives markets. This program aims to provide regulatory clarity and eliminate outdated requirements that hinder innovation. The pilot is open to qualified Futures Commission Merchants (FCMs) and includes new guidance on tokenised collateral, covering eligible assets, custody, valuation, and risk management. The CFTC has also withdrawn Staff Advisory 20-34, which previously restricted FCMs from accepting cryptocurrencies as customer collateral. [Source](https://www.cftc.gov/PressRoom/PressReleases/9146-25)
https://www.cftc.gov/PressRoom/PressReleases/9146-25 - The Commodity Futures Trading Commission (CFTC) has launched a digital assets pilot program, allowing certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), to be used as collateral in derivatives markets. This program aims to provide regulatory clarity and eliminate outdated requirements that hinder innovation. The pilot is open to qualified Futures Commission Merchants (FCMs) and includes new guidance on tokenised collateral, covering eligible assets, custody, valuation, and risk management. The CFTC has also withdrawn Staff Advisory 20-34, which previously restricted FCMs from accepting cryptocurrencies as customer collateral. [Source](https://www.cftc.gov/PressRoom/PressReleases/9146-25)
https://www.cftc.gov/PressRoom/PressReleases/9146-25 - The Commodity Futures Trading Commission (CFTC) has launched a digital assets pilot program, allowing certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), to be used as collateral in derivatives markets. This program aims to provide regulatory clarity and eliminate outdated requirements that hinder innovation. The pilot is open to qualified Futures Commission Merchants (FCMs) and includes new guidance on tokenised collateral, covering eligible assets, custody, valuation, and risk management. The CFTC has also withdrawn Staff Advisory 20-34, which previously restricted FCMs from accepting cryptocurrencies as customer collateral. [Source](https://www.cftc.gov/PressRoom/PressReleases/9146-25)
https://www.cftc.gov/PressRoom/PressReleases/9146-25 - The Commodity Futures Trading Commission (CFTC) has launched a digital assets pilot program, allowing certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), to be used as collateral in derivatives markets. This program aims to provide regulatory clarity and eliminate outdated requirements that hinder innovation. The pilot is open to qualified Futures Commission Merchants (FCMs) and includes new guidance on tokenised collateral, covering eligible assets, custody, valuation, and risk management. The CFTC has also withdrawn Staff Advisory 20-34, which previously restricted FCMs from accepting cryptocurrencies as customer collateral. [Source](https://www.cftc.gov/PressRoom/PressReleases/9146-25)
https://www.cftc.gov/PressRoom/PressReleases/9146-25 - The Commodity Futures Trading Commission (CFTC) has launched a digital assets pilot program, allowing certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), to be used as collateral in derivatives markets. This program aims to provide regulatory clarity and eliminate outdated requirements that hinder innovation. The pilot is open to qualified Futures Commission Merchants (FCMs) and includes new guidance on tokenised collateral, covering eligible assets, custody, valuation, and risk management. The CFTC has also withdrawn Staff Advisory 20-34, which previously restricted FCMs from accepting cryptocurrencies as customer collateral. [Source](https://www.cftc.gov/PressRoom/PressReleases/9146-25)

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative references recent developments, including the SEC's No-Action Letter to the DTCC on December 11, 2025, and the CFTC's digital assets pilot program announced on December 8, 2025. These events are current and have not been widely reported elsewhere, indicating freshness. However, the article's publication date is December 13, 2025, which is four days after the latest event, suggesting a slight delay. Additionally, the article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score: 9

Notes: The article includes direct quotes from SEC Chair Paul Atkins and CFTC Acting Chairman Caroline D. Pham. A search reveals that these quotes are unique to this narrative, with no identical matches found in earlier material, indicating originality. The wording matches the official statements from the respective agencies, confirming accuracy.

Source reliability

Score: 6

Notes: The narrative originates from 51 Insights, a platform that aggregates and analyses financial news. While it provides a comprehensive overview, the platform's credibility is not as well-established as that of major news outlets. The article cites official press releases from the DTCC and CFTC, which are reputable sources. However, the reliance on a single outlet for the primary narrative introduces some uncertainty.

Plausibility check

Score: 8

Notes: The claims about the SEC's No-Action Letter to the DTCC and the CFTC's digital assets pilot program are consistent with official press releases from the respective agencies. The article's tone and language are appropriate for the subject matter and region, with no inconsistencies noted. The structure is focused and relevant, without excessive or off-topic detail. The dramatic tone is justified given the significance of the regulatory changes discussed.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative provides timely and original information on recent regulatory developments in the digital asset space, supported by direct quotes from official sources. While the freshness score is slightly impacted by a four-day delay in publication, the content is current and relevant. The reliance on a single, less-established outlet introduces some uncertainty regarding source reliability. Overall, the narrative is plausible and consistent with official statements, warranting a 'PASS' verdict with medium confidence.

Crypto
Tokenisation
Regulation