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The Depository Trust & Clearing Corporation (DTCC) has received clearance from the US Securities and Exchange Commission to pilot a regulated tokenization service.

This is a significant step toward bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi). Furthermore, the initiative can likely benefit several assets in the cryptocurrency market.

DTCC Receives SEC Nod for Asset Tokenization

In a recent announcement, DTCC stated that its subsidiary, The Depository Trust Company (DTC), has obtained a No-Action Letter from the SEC. This allows it to tokenize real-world assets held in DTC custody under existing federal securities laws. The service is expected to begin rolling out in the second half of 2026.

The No-Action Letter permits DTC to offer the tokenization service for an initial period of three years. During this time, DTC will be able to issue blockchain-based representations of certain traditional securities, with the digital tokens carrying the same ownership rights, investor protections, and legal entitlements as their conventional counterparts.

According to DTCC, the authorization applies to a limited group of highly liquid assets. These include equities in the Russell 1000 index, exchange-traded funds tracking major benchmarks, and US Treasury bills, notes, and bonds.

“Tokenizing the US securities market has the potential to yield transformational benefits such as collateral mobility, new trading modalities, 24/7 access and programmable assets, but this will only be achievable if market infrastructure provides a robust foundation to usher in this new digital era,” Frank La Salla, President and CEO of the DTCC said.

Which Altcoins Could Gain From DTCC’s Tokenization Service?

DTCC emphasized that it is permitted to provide a “limited production environment tokenization service on selected blockchains.” Notably, no specific networks have been chosen for the service yet.

However, the initiative has sparked speculation across the digital asset sector about which ecosystems could ultimately stand to gain from DTCC’s move into tokenization. Below are three altcoins that may benefit:

1. Ethereum (ETH)

Ethereum is widely viewed as one of the leading candidates. According to Matthew Sigel, Head of Digital Assets Research at VanEck, there is a “99% chance” that DTCC could select Ethereum for its tokenization service.

On-chain data supports this view. As of December 12, the total distributed value of tokenized real-world assets stands at approximately $18.48 billion, with Ethereum accounting for around 66% of that market.

Data from RWA.xyz showed that the network currently hosts about $12.2 billion worth of tokenized RWAs, making it the dominant public blockchain in this segment.

Ethereum’s established role in tokenized asset issuance, combined with its security and extensive developer ecosystem, strengthens its positioning. DTCC has also previously used Ethereum for several of its initiatives.

DTCC and Ethereum’s Initiatives. Source: X/Will Corcoran

This positions Ethereum to capture transaction fees and liquidity from tokenized securities, potentially accelerating its transition to a foundational layer for global finance.

2. Chainlink (LINK)

The next leading contender is Chainlink. Chainlink is often cited as the connective layer between on-chain and off-chain systems, a role that closely aligns with DTCC’s emphasis on regulated tokenization, data integrity, and interoperability. Its oracle infrastructure, cross-chain capabilities, and proof-of-reserve solutions are particularly relevant for institutional use cases.

The two entities also have a track record of collaboration. In 2023, DTCC and Chainlink collaborated on SWIFT’s blockchain interoperability project.

In September 2025, Chainlink partnered with DTCC and 24 financial institutions to address inefficiencies in corporate actions processing. Taken together, this history of cooperation strengthens Chainlink’s case and has increased optimism among the community.

3. Ondo Finance (ONDO)

The last one is Ondo Finance. As the leader in tokenized stocks by total value, Ondo commands $361.2 million, representing 51.64% of the $699.51 million market for tokenized public equities.

Ondo’s recent clearance from a two-year SEC investigation further bolsters its expansion in US tokenization. With a 12.67% growth in market share over the past 30 days, Ondo could be well-equipped to handle increased institutional inflows.

Thus, as DTCC’s initiative progresses, potential inclusion could be beneficial for all three networks. It could enhance credibility, deepen liquidity, and reinforce real-world use cases across these ecosystems.

From a market perspective, sustained institutional adoption of tokenized securities may also have longer-term implications for price performance. Increased on-chain activity, higher transaction volumes, and deeper integration into regulated financial infrastructure could support structural demand for ETH, LINK, and ONDO over time.

After the FED announced interest rate cuts, major whale wallets began pouring capital into long positions on Ethereum (ETH). These moves signal strong confidence in ETH’s upside. They also increase overall risk.

Several factors suggest that their long positions may face liquidation soon without effective risk management.

How Confident Are Whales in Their Ethereum Long Positions?

Whale behavior offers a clear view of current sentiment.

On-chain tracking account Lookonchain reported that a well-known whale, considered a Bitcoin OG, recently expanded a long position on Hyperliquid to 120,094 ETH. The liquidation price sits at only $2,234.

This position is currently showing a 24-hour PnL loss of more than $13.5 million.

A Whale’s Long ETH Position on Hyperliquid. Source: HyperDash

Similarly, another well-known trader, Machi Big Brother, is maintaining a long position worth 6,000 ETH with a liquidation price of $3,152.

Additionally, on-chain data platform Arkham reported that the Chinese whale trader who called the 10/10 market crash is now holding a $300 million ETH long position on Hyperliquid.

Whale activity in ETH long positions reflects their expectation of a near-term price increase. However, behind this optimism lies a significant risk stemming from Ethereum’s leverage levels.

ETH Leverage Is Reaching Dangerous Highs

CryptoQuant data shows that ETH’s estimated leverage ratio on Binance has reached 0.579 — the highest in history. This level indicates extremely aggressive leverage usage. Even a small price swing could trigger a domino effect.

Ethereum Estimated Leverage Ratio – Binance. Source: CryptoQuant.

“Such a high leverage ratio means that the volume of open contracts financed by leverage is rising faster than the volume of actual assets on the platform. When this occurs, the market becomes more vulnerable to sudden price movements, as traders are more susceptible to liquidation—whether in an upward or downward trend,” analyst Arab Chain said.

Historical data indicate that similar peaks typically coincide with periods of intense price pressure and often signal local market tops.

Spot Market Weakness Adds More Risk

The spot market is also showing clear signs of weakening. Crypto market watcher Wu Blockchain reported that spot trading volume on major exchanges dropped 28% in November 2025 compared to October.

Another report from BeInCrypto highlighted that stablecoin inflows into exchanges have declined by 50%, falling from $158 billion in August to $ 78 billion as of today.

Combined, low spot buying power, high leverage, and shrinking stablecoin reserves reduce ETH’s ability to recover. These conditions could put whale long positions at significant risk of liquidation.