SEC Grants DTCC Ability to Tokenize Assets

The U.S. Securities and Exchange Commission has issued a three-year no-action letter to the Depository Trust & Clearing Corporation, enabling tokenized stocks and real-world assets on approved blockchains.

This regulatory approval marks a significant step in digitizing market infrastructures, potentially transforming how securities and real-world assets are managed and traded.

SEC Greenlights DTCC’s Blockchain Tokenization Pilot

The SEC issued a no-action letter granting the DTCC permission to record tokenized stocks and other real-world assets on a blockchain. This endeavor involves expanding record-keeping to a blockchain platform, marking a significant step for asset digitalization in financial markets. More insight can be found in the SEC No-Action Letter on Digital Token Offerings.

This initiative potentially changes traditional asset management by incorporating blockchain networks into existing post-trade infrastructure. Blockchain technology may expedite transactions and broaden market accessibility.

“The pilot is a significant incremental step in moving markets onchain.” — Hester Peirce, Commissioner, SEC

DTCC’s Blockchain Efforts Mirror Past Innovations

Did you know? In prior experiments, the DTCC explored distributed ledger technology for post-trade processing, suggesting a consistent move towards integrating modern digital frameworks into its operations.

Bitcoin (BTC) currently trades at $92,410.26 with a market cap of $1.84 trillion and has a market dominance of 58.74%. Over 19,960,912 BTC are in circulation, with the max supply capped at 21 million. In the last 30 days, Bitcoin’s price fell by 10.27%, according to CoinMarketCap.

The Coincu research team notes that regulatory approval for blockchain-based tokenization showcases a potential financial paradigm shift. Such technological moves could drive regulatory and market progress, prompting broader adoption in capital markets, as reflected in Bankless Discussions on Crypto and Regulation.