DTCC gets green light to offer blockchain-based securities service

By Hannah ⁠Lang

Dec 11 (Reuters) - ⁠A ‍subsidiary of the Depository Trust & Clearing Corporation ‍has received a "no action" letter ​from the U.S. Securities and ​Exchange Commission to offer a service to tokenize stocks, exchange-traded funds and ​bonds, which the company plans to roll out next ​year.

Cryptocurrency proponents say tokenized shares — blockchain-based ‌instruments that track traditional equities — could revolutionize stock markets ​by allowing shares ⁠to be traded 24/7 and settled instantly, boosting ‌liquidity and reducing transaction costs.

Under the "no action" letter from ‌the SEC, the Depository Trust Company (DTC) ‌will be able to offer its tokenization service for three years across ‍a number of blockchains. The company said it ⁠would release more information about the offering in the coming months.

(Reporting by Hannah Lang in New York)

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