In a significant move for the financial industry, the U.S. Securities and Exchange Commission (SEC) has granted a three-year no-action relief to the Depository Trust & Clearing Corporation (DTCC) subsidiary. This decision paves the way for the tokenization of assets held in custody by the DTC, including prominent stocks and exchange-traded funds (ETFs). The source notes that this development could revolutionize the way assets are managed and traded in the market.
SEC's Approval: A Crucial Step for Tokenized Assets
The SEC's approval is seen as a crucial step towards integrating tokenized assets into the traditional financial system. By allowing the tokenization of DTC-custodied assets, the SEC aims to enhance efficiency and transparency in asset management and trading processes.
Impact of No-Action Relief on DTCC
This no-action relief will enable DTCC to explore innovative solutions that leverage blockchain technology, potentially transforming how securities are issued, traded, and settled. Industry experts believe that this development could lead to increased liquidity and accessibility for investors as well as reduced operational costs for financial institutions.
Ondo Finance has recently concluded its SEC investigation without charges, marking a significant achievement for the company. This development aligns with the launch of a new fund aimed at innovation in tokenization. For more details, see read more.
