DTC Proposes Overhaul to Cut Share Transfer Times From Days to Minutes
DTC files proposal to speed up share transfers
The Depository Trust Company (DTC) has asked the SEC to approve a major upgrade to its Direct Registration System (DRS), which would cut share-transfer processing time from days to minutes. The filing was submitted on September 29.
The DRS is the system that moves eligible securities between brokerage "street name" accounts and direct ownership on an issuer's transfer-agent records, without using paper certificates. The change is relevant to platforms that register shares on blockchain networks.
Under the proposal, DTC would replace its legacy batch-file processing with real-time APIs and automate a step that currently requires manual action by transfer agents. However, agents would still need to validate and approve each transfer request before shares move.
What the automation changes
- Today, when a transfer agent approves a participant's "Profile Deposit Request," the agent must separately initiate an order to credit shares to the participant's DTC account.
- Under the new system, DTC's Securities Processing Application would automatically create that Deliver Order once the agent gives approval, removing the manual step.
- DTC would retire its legacy PTS/PBS functions and CCF batch-file processing for covered transactions.
- Participants and transfer agents would use the Securities Processing Application through the DTCC Portal, or connect via APIs and message queues for machine-to-machine communication.
- A centralized billing system would collect covered fees, replacing a patchwork in which some fees are invoiced outside DTC.
- DTC would extend its existing 5% collection charge to applicable Profile Deposit fees, deducting it from the amount sent to the agent.
Securitize calls the change "intraday"
Securitize CEO Carlos Domingo said on October 8 that he was told by DTCC the proposal would enable intraday transfers. His company tokenized its own NYSE-listed stock, SECZ, in July. Domingo said the overhaul would provide a faster route from brokerage accounts to tokenized shares through transfer-agent records.
DTC's filing frames the goal as reducing processing times rather than guaranteeing a completion window for every transfer. The timetable for agent validation remains outside DTC's control.
Next steps and timeline
The proposal requires SEC approval before it can take effect. DTC targets implementation by November 13, 2026, or no later than January 2027 if that date slips, with advance notice given to market participants. Public comments on the proposal are due by October 26 under file number SR-DTC-2026-012.
Why this matters for onchain finance
Faster, more automated share registration makes it easier for blockchain platforms to move securities between traditional custody and onchain tokenized forms. The change does not eliminate the need for transfer-agent approval, but it removes a manual bottleneck that has slowed the process.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.