tokenization

The U.S. Securities and Exchange Commission (SEC) has opened the door to one of the biggest technological shifts in the history of American capital markets. The regulator has approved a three-year pilot program by DTCC (Depository Trust & Clearing Corporation), the clearing giant responsible for processing the vast majority of transactions on the U.S. stock market.
The project will allow selected U.S. securities to be recorded directly on a blockchain, marking the first time a major segment of the American market will officially interact with distributed ledger technology.

SEC Allows Tokenization of Existing Securities for the First Time
Sources familiar with the matter confirmed that the SEC granted DTCC’s clearing subsidiary, the Depository Trust Company (DTC), permission to mint and burn blockchain-based tokens representing securities already held in DTC custody.
This is a historic milestone: for the first time, the SEC explicitly allows blockchain to function as an official system of record for securities.
The decision was outlined in a letter published on December 11, stating the SEC will take “no action” against DTC for creating or destroying tokenized representations of securities under this pilot. The program is scheduled to launch in the second half of 2026.

Regulations Temporarily Eased to Enable Blockchain Experimentation
The approval comes with significant regulatory flexibility. The pilot temporarily waives several traditional SEC requirements, including:
rules governing the reliability of systemically important market infrastructurecertain operational standards for clearing agenciesthe need to file changes under Section 19b-4
These exemptions allow DTCC to experiment without undergoing full regulatory approval for every technical component.
In an announcement on X, DTCC stated that the initiative aims to bridge traditional finance (TradFi) with decentralized finance (DeFi) and support the development of a more resilient, inclusive, and efficient global financial system.
Participants will be able to choose whether they want to convert their traditional book-entry entitlements into blockchain-based tokenized entitlements.

DTCC Must Report Pilot Details Quarterly
To maintain approval for the pilot, DTCC must submit quarterly reports to the SEC detailing:
the number of participating institutionsthe total value of tokenized entitlementswhich blockchains were usedany outages or operational disruptionsthe number of registered blockchain walletsall instances where DTCC used its authority to reverse transactions
These disclosures will help regulators evaluate the safety and performance of the tokenization framework.
The initiative can include securities that meet eligibility criteria such as assets in leading index-tracking ETFs, U.S. Treasuries, and instruments from the Russell 1000 index.

How the Tokenization Process Works
When a market participant requests tokenization, DTCC will:
Transfer the securities from its central ledger to a new digital omnibus account.Mint a blockchain token corresponding to that security.Send the token to a registered blockchain wallet controlled by the participant.
This creates a digital representation of the existing financial entitlement.
According to sources, this model could significantly reduce reconciliation needs, accelerate transfers, and enable movement of claims outside standard market hours — all while preserving national market-infrastructure safeguards.
Tokens may be stored on approved public or private blockchains, provided they meet DTCC’s technology standards. Transfers will only be allowed between wallets registered with DTCC, and the company will maintain a root wallet allowing it to reverse or correct transactions in case of errors or improper activity.
DTCC has not yet disclosed which networks will be supported, noting that the regulatory focus lies primarily on custody and control practices rather than mandating a specific blockchain design.

#SEC , #WallStreet , #Tokenization , #DigitalAssets , #defi

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📅 November 11 | United States
The traditional financial system has just received a shock that few saw coming: JPMorgan created a corporate debt token on Solana, and it did so to facilitate a historic transaction linked to Galaxy Digital. In a market where global banks are cautiously moving towards tokenization, this transaction breaks the symbolic barrier that separated Wall Street from public blockchains.

📖JPMorgan called the transaction a “milestone” for the financial market. The bank arranged a commercial paper offering for a subsidiary of Galaxy Digital Holdings, using a token created specifically for this purpose: the USCP, a tokenized version of Galaxy's short-term corporate debt, built on the Solana blockchain.
The transaction represents one of the first documented debt issuances on an open public chain, marking a decisive step in the evolution of digital markets.
While the participants did not disclose the exact size or terms of the issuance, the structure was entirely public:
USCP issuance on Solana.Purchase by Coinbase and Franklin Templeton, two institutions with experience in tokenized assets.Settlement and redemption in USDC, Circle's stablecoin, marks a new milestone in the commercial paper market.
For JPMorgan, this transaction demonstrates technological capability. Scott Lucas, head of digital asset markets at the bank, stated that the transaction is key to understanding the role blockchain will play in the future of financial markets.
He also emphasized that the use of Solana was not accidental: the network allows for fast settlement times, low costs, and an infrastructure capable of supporting complex institutional instruments.
Coinbase's participation adds an important operational component. The company is providing private key custody, specialized wallets, and entry and exit services for USDC. This ensures that institutional participants can trade the new token without compromising security or regulatory compliance.
Meanwhile, Galaxy Digital continues its aggressive expansion into on-chain financial processes. The company had already tokenized representations of its SEC-listed shares on Solana, and is also one of the main backers of SOL's largest institutional treasury under Forward Industries (FORD), where new on-chain financialization models are being tested.
The goal: to strengthen short-term corporate financing and open the door to a new generation of investors who are already incorporating blockchain-based instruments into their portfolios. Tokenization, which until recently seemed like a futuristic concept, is beginning to take shape in real debt transactions, with top-tier players and on high-speed public blockchains.

Topic Opinion:
The fact that JPMorgan, Galaxy Digital, Coinbase, and Franklin Templeton are participating in the same transaction—and on Solana no less—reveals that tokenization has moved beyond a promise to become a living infrastructure. I firmly believe that we will see more debt, more equities, and more monetary instruments migrate to public blockchains.
💬 Do you think debt tokenization will be the next big financial wave?

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#JPMorgan #GalaxyDigital #solana #Tokenization #CryptoNews $SOL