Traditional financial markets are rapidly moving onchain as the SEC chair supports an “innovation exemption” for tokenization. The SEC granted a “no action” letter to the DTCC for a securities market tokenization service, including assets like the Russell 1000 index and US Treasury bonds. Onchain markets promise predictability, transparency, and efficiency for investors.

SEC chair Atkins advocates for innovation in onchain settlement to enable 24/7 trading and faster transaction finality. The SEC is considering an innovation exemption to transition markets onchain without excessive regulatory requirements. Asset tokenization on the blockchain offers fractionalized shares and 24/7 trading opportunities for investors.

The DTCC’s tokenization service has garnered praise from crypto analysts for moving financial markets quickly towards full tokenization. The SEC has issued two previous no-action letters for other projects, signaling a trend towards tokenized onchain markets. Real Finance recently closed a $29 million funding round to boost institutional participation in tokenized real-world assets.

Read more at Cointelegraph: US Markets Race Toward Onchain Settlement After SEC No Action