SEC Approves DTCC's Blockchain-Based Tokenization Services

According to PANews, the U.S. Securities and Exchange Commission (SEC) has granted permission to the Depository Trust & Clearing Corporation (DTCC) to host and recognize tokenized stocks and other real-world assets (RWA) on a blockchain. This approval allows DTCC to offer tokenization services on a pre-approved blockchain for a three-year period. SEC Commissioner Hester Peirce stated that although the project is still in its pilot phase and subject to various operational constraints, it represents a significant step towards market migration onto the blockchain. Michael Winnike, DTCC's Global Head of Strategy and Market Solutions for Clearing and Securities Services, mentioned in an interview that following the approval, DTCC plans to extend its record-keeping operations to the blockchain. DTCC plays a crucial role in the U.S. financial system as a central clearing and settlement hub for stocks and fixed income products. Many liquid assets in the U.S. market are stored in DTCC's custody division, the Depository Trust Co. The company anticipates launching its new tokenization services in the latter half of next year.