Three alternative digital currencies may benefit after the U.S. Securities and Exchange Commission (SEC) licenses DTCC to provide tokenization services.
The U.S. Securities and Exchange Commission's licensing of DTCC to begin tokenizing regulated assets represents one of the most important steps towards integrating traditional finance (TradFi) and decentralized finance (DeFi). Under a three-year framework, and without shares, DTC, a subsidiary of DTCC, will issue digital tokens representing selected traditional securities with full ownership rights and investor protection. The pilot phase will initially focus on highly liquid assets such as Russell 1000 index stocks, major exchange-traded funds, and U.S. Treasury bonds, with plans to launch production in late 2026. While DTCC has not disclosed the blockchains that will support the tokenization environment, the market is already focusing on three potential beneficiaries. Ethereum remains at the forefront, hosting over $12 billion in funded assets, representing more than 66% of the sector, and has been used in previous pilot projects by DTCC. Due to its security, developer base, and institutional tools, Ethereum (ETH) is a strong contender for capturing liquidity and fee flows from tokenized securities.
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