SEC Approves Tokenization of Stocks and Securities for Trading
- The U.S. SEC issued a no-action letter allowing the Depository Trust Co. (DTC) to offer a tokenization service for three years.
- Tokenization will apply to constituents of the Russell 1000 index, ETFs tracking major indexes, and U.S. Treasuries.
- The service rollout is scheduled for the first half of 2026.
- Major financial institutions like JPMorgan and BlackRock are exploring projects in tokenization to enhance blockchain finance.
This development marks a significant step towards integrating traditional finance with blockchain technology, potentially increasing efficiency in asset trading and settlement processes.
With the DTC’s authorization impacting major securities, this move could reshape how assets are traded digitally by mid-2026.
