SEC Approves DTCC to Test Tokenized Stocks, Bonds, and U.S. Treasuries

SEC Approval for DTCC: The U.S. SEC has granted the Depository Trust and Clearing Company (DTCC) approval to offer tokenized real-world assets, allowing it to custody and record tokenized stocks, bonds, and U.S. Treasuries on pre-approved blockchains for three years.

Tokenization Process: Tokenization involves converting real-world assets into digital tokens for trading on a blockchain, with the DTCC set to create tokenized versions of assets it already holds, maintaining the same investor protections and ownership rights.

Potential Benefits and Risks: Supporters believe tokenization could bridge traditional and decentralized finance, providing 24/7 access to assets, while skeptics caution that underlying risks in lending and borrowing remain unchanged despite the new technology.

Future Developments: The DTCC is expected to publish a list of supported networks in the coming months, marking a significant step in the evolution of securities tokenization in the U.S. financial markets.