Asian crypto firm Hashkey becomes inaugural member from region in DTCC tokenization group

Asian crypto firm Hashkey becomes inaugural member from region in DTCC tokenization group

As the first crypto service provider from Asia, Hashkey has become part of the DTCC's tokenization innovation working group, joining a coalition of more than 100 financial institutions that includes JPMorgan and Goldman Sachs.

The Depository Trust & Clearing Corporation's (DTCC) Digital Assets Advisory Services Industry Working Group has welcomed Hashkey as a participant, marking the first time a digital asset service provider from Asia has joined the initiative.

The Asian crypto firm now collaborates alongside more than 100 international financial institutions and asset management companies working to establish standards for how tokenized assets will be issued, settled and protected on an institutional level. Among the other members are JPMorgan Chase, Goldman Sachs, Nasdaq and the New York Stock Exchange (NYSE), according to an announcement released by the company on Wednesday.

As a central post-trade infrastructure provider within conventional financial markets, DTCC established this working group to bridge traditional finance with decentralized finance (DeFi) infrastructure. The organization intends to roll out access to tokenized securities in October, working in partnership with the group. With custody of $114 trillion in liquid assets, DTCC manages holdings that include stocks and exchange-traded funds.

Last December, a subsidiary of DTCC received a "no action" letter from the US Securities and Exchange Commission (SEC), allowing the entity to provide a new tokenization service for securities markets.

Paul Atkins, SEC Chairman, stated that the approval granted for the DTCC's pilot represents just the starting point, noting that the SEC will evaluate an innovation exemption to allow builders to begin "transitioning our markets onchain," while avoiding "cumbersome regulatory requirements," based on a Dec. 12 X post.

The concept of an innovation exemption for tokenization was initially put forward by Atkins during his speech at the Crypto Task Force Roundtable on DeFi on June 9.