Following SEC approval, DTCC will initiate a pilot to tokenize U.S. Treasury securities on the Canton Network, a blockchain designed for privacy, commencing in the latter half of 2026.
The pilot aims to enhance blockchain adoption, potentially revolutionizing asset tokenization processes and encouraging new liquidity products without affecting public cryptocurrencies like Bitcoin or Ethereum.
SEC Greenlights DTCCโs Blockchain-Powered Treasury Pilot.
The DTCC has received an SEC no-action letter allowing it to begin tokenizing select U.S. Treasury securities on the Canton Network.
SEC Greenlights DTCCโs Blockchain-Powered Treasury Pilot
The DTCC has received an SEC no-action letter allowing it to begin tokenizing select U.S. Treasury securities on the Canton Network. Testing will commence in the second half of 2026, representing a shift towards blockchain integration in finance.
Involved parties include DTCC, its subsidiary DTC, the Canton Network, and Digital Asset. These organizations aim to utilize this pilot for advancing blockchain-based financial procedures. Major firms such as BlackRock and Goldman Sachs back the Canton blockchain.
Tokenization Pilot to Enhance Liquidity and Trading Efficiency
The pilot aims to enhance liquidity and trading efficiency through tokenization, enabling more seamless transactions. This initiative could potentially change how financial assets are managed on a blockchain, with significant implications for institutional finance.
Industry experts view the move as accelerating blockchain adoption among financial institutions. Historical pilots by DTCC showed successful tokenized Treasury transactions. This model could reduce settlement times significantly, supporting 24/7 trading capabilities. โThe successful completionโฆ marks a significant step toward 24/7 tradingโฆ Itโs an industry first,โ said Justin Peterson, CTO, Tradeweb.
Earlier Tests Show Promise for DTCCโs Blockchain Endeavors
DTCCโs pilot follows its earlier tests involving 26 organizations testing tokenized Treasuries for collateral. These trials demonstrated improved processes and real-time financial operations, setting the stage for more advanced applications in traditional finance.
Experts, including Yuval Rooz from Digital Asset, believe that DTCCโs involvement will accelerate industry adoption. โAccelerates industry adoption,โ said Yuval Rooz, CEO, Digital Asset. The initiative could pioneer new financial products and potentially reshape private finance ecosystems by enhancing interoperability and liquidity.
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