The U.S. Securities and Exchange Commission (SEC) has signaled an implicit approval for the trading of tokenized stocks, following the approval of the Depository Trust & Clearing Corporation (DTCC) to facilitate blockchain-based securities. This development positions the United States to expand the use of distributed ledger technology (DLT) in traditional equity markets, potentially streamlining trading, settlement, and custody processes.
DTCC, which oversees clearing and settlement for the vast majority of U.S. securities, received regulatory clearance to operate a blockchain platform that allows digital representation of traditional equities. While the SEC has not formally endorsed tokenized stocks, the approval indicates a willingness to integrate digital assets within the existing securities framework, provided compliance with federal regulations is maintained.
Industry analysts note that tokenized stocks could reduce settlement times, lower operational costs, and increase market transparency. Investors may also benefit from 24/7 trading capabilities and fractional ownership opportunities, potentially attracting a wider range of participants into the stock market.
However, challenges remain, including cybersecurity risks, regulatory clarity, and interoperability with conventional trading platforms. The SEC is expected to continue monitoring the rollout closely, ensuring that investor protection and market integrity remain central to adoption.
DTCC’s move marks a significant milestone in bridging traditional finance with blockchain innovation, paving the way for broader acceptance of tokenized financial instruments in mainstream markets.
