US financial markets ‘poised to move on-chain,’ amid DTCC tokenization greenlight

Paul Atkins, the chair of the SEC, declared that U.S. financial markets are prepared to transition on-chain, emphasizing the agency's embrace of new technologies to facilitate this future. This statement follows the SEC issuing a "no action" letter to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), allowing it to launch a new securities market tokenization service. The DTCC plans to tokenize significant assets like the Russell 1000 index, ETFs, and US Treasury bills, which Atkins views as a crucial step toward on-chain capital markets that promise greater predictability and efficiency.

Furthermore, Atkins indicated the SEC will consider an "innovation exemption" to ease regulatory burdens for builders transitioning markets on-chain. He pledged support for innovation in on-chain settlement, which utilizes blockchain ledgers to remove intermediaries, enable 24/7 trading, and achieve faster finality. The no-action letter permits the DTCC, a key infrastructure provider for US securities, to proceed with its pilot, granting tokenized assets the same protections as traditional assets. Industry analysts have praised the move, noting the rapid acceleration toward full tokenization.

(Source：Cointelegraph)