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

ChainCatcher news, 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 the blockchain. This move enables DTCC to provide tokenization services on pre-approved blockchains 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 restrictions, it marks an important step for the market towards on-chain migration." Michael Winnike, Global Head of Strategy and Market Solutions for Clearing and Securities Services at DTCC, said in an interview that after receiving approval, DTCC will also expand its record-keeping operations to the blockchain.

As the core clearing and settlement center of the U.S. financial system, DTCC plays a significant role in the fields of stocks and fixed income products. 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.