The SEC grants permission to DTCC to tokenize shares

Source: CritpoTendencia Original Title: The SEC Grants Permission to the DTCC to Tokenize Shares Original Link: The U.S. Securities and Exchange Commission (SEC) consolidates its favorable stance towards innovation related to the crypto sector. On this occasion, the agency approved the Depository Trust & Clearing Corp (DTCC) to tokenize shares. All of this as an initial step towards the complete migration of the company’s assets to the blockchain.

This SEC permission is granted in the form of a no-action letter. This modality allows exploration of innovation-related topics without the risk of legal action by regulators. With this, the DTCC can digitize part of its shares and fixed income assets on the blockchain.

The company will be able to custody and recognize tokenized shares and other tokenized real-world assets. In this context, the DTCC will offer tokenization services on blockchain platforms previously approved for a period of 3 years. SEC Commissioner Hester Peirce referred to this permission as a decisive step in the financial transition towards blockchain technology.

Although this is a pilot program subject to several operational limitations, it marks a significant incremental step in the movement of markets towards blockchain, the commissioner stated. Additionally, Michael Winnike, the global head of strategy and market solutions at DTCC Clearing & Securities Services, also expressed his enthusiasm for this permission.

DTCC Prepares for Tokenized Share Services

DTCC plays a leading role in the functioning of the U.S. financial system. In this regard, it functions as a hub for the clearing and settlement of shares and fixed income products. A large part of the liquid assets in the U.S. stock market is held within DTCC’s custody arm.

This makes it a key piece in promoting the transition of the financial world towards blockchain technology. The first tokenized asset services of this new initiative are expected to launch during the second half of the upcoming year 2026.

An aspect to highlight about this authorization is the limitation, as it only includes the securities set of the Russell 1000 index. This includes stocks and funds tracking assets such as bonds and U.S. Treasury notes.

According to Winnike, DTCC’s ultimate goal is to tokenize all shares under its management. This is an aspiration that requires more than just a no-action permission, as it involves no less than $100 billions of dollars in assets.

This large-scale ambitious plan indicates that the evolution of the financial world towards blockchain is an inevitable fact. What once seemed like a distant dream now appears as a certainty that will take shape over time. The SEC’s decision marks a first and decisive step in that direction.