The SEC allows DTCC to custody and recognize tokenized stocks and other RWA assets on the blockchain

According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) has granted permission to the Depository Trust & Clearing Corporation (DTCC) in the form of a no-action letter, allowing the company to custody and recognize tokenized stocks and other real-world assets (RWA) on a blockchain. This move enables DTCC to provide tokenization services on a pre-approved blockchain for a period of three years.

SEC Commissioner Hester Peirce stated in a statement, "Although the project is still in the pilot phase and subject to various operational constraints, it marks an important step towards the market's migration on-chain." Michael Winnike, Head of Global Strategy and Market Solutions for DTCC's Clearing and Securities Services, mentioned in an interview that after obtaining the permission, DTCC will also expand its record-keeping efforts to the blockchain.

As a core clearing and settlement center of the U.S. financial system, DTCC plays a significant role in the equities and fixed income products space. Many liquid assets in the U.S. market are held in DTCC's custody division—Depository Trust Co. The company expects to launch its new tokenization services in the second half of next year.