SEC Approves DTCC to Provide Tokenization Services for Securities Market

SEC Grants No-Action Letter: The US SEC has issued a no-action letter to the Depository Trust Company (DTC), allowing it to launch a new service for tokenizing real-world assets, including highly liquid assets like the Russell 1000 index and US Treasury securities.

Tokenization Benefits: DTCC CEO Frank La Salla highlighted that tokenizing the US securities market could lead to significant advantages such as improved collateral mobility, new trading methods, 24/7 access, and programmable assets.

Service Duration and Compliance: The no-action letter permits DTC to offer its tokenization service on approved blockchains for three years, ensuring that digital assets maintain the same rights and protections as their traditional counterparts.

SEC's Evolving Stance on Crypto: The SEC, under Chair Paul Atkins, has shown a more favorable approach towards the crypto industry, recently issuing multiple no-action letters to facilitate the integration of crypto products within its regulatory framework.