Welcome back to The Breakdown with me, NLW.

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What's going on, guys? It is Monday, December 15th, and today we are talking asset tokenization.

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All right, friends, well, the depository trust company has obtained approval to start offering asset tokenization,

marking a huge step forward for crypto infrastructure. The DTC is a subsidiary of the

depository trust in clearing corporation, or DTCC, who handle financial assets clearing

in custody for the entire U.S. stock market, as well as many

other stock markets. They clear quadrillions in trades each year and are one of the most critical

providers of financial infrastructure. The approval comes in the form of a no-action letter from

the SEC. It allows participants in the DTC network to tokenize a defined set of highly liquid

assets on pre-approved blockchains over the next three years.

The asset set includes every stock in the Russell 1000, ETFs tracking major indices, as well as

U.S. Treasury bills and bonds. So essentially every security that trades in U.S. public market

in any real size. The DTC said they expect to launch their service in the second half of next year.

Frank Lassala, the CEO of the DTCC,

talked about this initiative in terms of updating the stack for the entirety of U.S. financial markets.

He said in a statement, I want to thank the SEC for its trust in us.

tokenizing the U.S. securities market has the potential to yield transformational benefits

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