The US Securities and Alternate Fee (SEC) granted a no-action letter to the Depository Belief Firm (DTC), a subsidiary of the Depository Belief & Clearing Company (DTCC), which permits it to supply a brand new tokenization service for DTC-custodied belongings in a managed setting.
The service will assist a set of extremely liquid belongings, together with the Russell 1000, exchange-traded funds (ETFs) tied to main indices, and US Treasury payments, bonds, and notes. It’s anticipated to launch within the second half of 2026.
The no-action letter means the SEC is not going to take enforcement motion if the tokenization providing operates as described, which provides DTC a regulatory inexperienced mild to proceed below federal securities legal guidelines.
Do you know?
Subscribe – We publish new crypto explainer movies each week!
Proof of Work vs Proof of Stake: Which is Higher? (ANIMATED)
DTCC is a key supplier of US securities market infrastructure, managing clearing, settlement, and buying and selling of US securities. At the moment, the corporate is entering into blockchain-based companies by bridging conventional finance and decentralized finance (DeFi).
The tokenized belongings will mirror their conventional variations when it comes to possession rights, investor protections, and authorized standing.
The letter permits DTC to supply the tokenization service to contributors and their shoppers utilizing pre-approved blockchains for a period of three years.
DTCC CEO Frank La Salla famous that tokenizing the US securities market may carry advantages akin to elevated collateral mobility, new methods to commerce, around-the-clock entry, and programmable belongings.
Just lately, the SEC’s Division of Company Finance offered a no-action letter to Fuse Crypto Restricted. What does it say? Learn the total story.
