U.S. SEC Approves DTCC's Blockchain-based Tokenization Service

The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter allowing the Depository Trust & Clearing Corporation (DTCC) to provide blockchain-based asset tokenization services. Accordingly, DTCC will operate a securities tokenization pilot program for the next 3 years, and expectations are growing that the digital transformation of the U.S. financial market structure will begin in earnest.

Frank LaSala, DTCC's chief executive officer (CEO), emphasized, "The tokenization of the U.S. securities market will bring innovative changes such as collateral mobility, new trading methods, 24-hour asset accessibility, and programmable assets," and added, "All of these innovations can only be realized when supported by stable market infrastructure."

SEC Commissioner Hester Peirce also said, "This action is an important advance in the movement of the securities market to blockchain," calling it "a decisive moment that could accelerate the era of digital securities."