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)
