Author: Kevin, Movemaker Researcher; Source: X, @MovemakerCN

SEC Chairman Paul Atkins pointed out that the entire U.S. financial market, including stocks, fixed income, Treasury bonds, and real estate, may fully migrate to the blockchain technology architecture that underpins cryptocurrencies within the next two years. This can be considered the most significant structural change in the U.S. financial system since the advent of electronic transactions in the 1970s.

1. A Cross-Departmental Collaboration Framework for Fully On-Chain Access and Practical Contributions

Atkins' "Project Crypto" initiative is not a unilateral action by the SEC; it is built on systemic cooperation across legislation, regulation, and the private sector.

1.1 Government Departments Involved in Full Assetization

It should be added that the “Project Crypto” and “Innovation Exemption” mechanisms acknowledge the incompatibility between blockchain technology and existing financial regulations, providing a controlled experimental environment that allows traditional financial institutions (TradFi) to explore and implement tokenized infrastructure without violating core investor protection principles.

It is worth noting that the “Project Crypto” and “Innovation Exemption” mechanisms acknowledge the incompatibility between blockchain technology and existing financial regulations, providing a controlled experimental environment that allows traditional financial institutions (TradFi) to explore and implement tokenized infrastructure without violating core investor protection principles.

2. Analysis of the Financial Environment and Impact after Full Tokenization

The core goal of asset tokenization is to break the "island effect" and "time constraints" of traditional finance and create a global, programmable, and 24/7 financial system.

2.2 The Most Affected Participants

Tokenization has brought about disruptive changes, having the greatest impact on the following types of market participants:

Key Challenges and Risks：

• Trade-off between liquidity and net settlement：DTCC Currently, netting millions of transactions reduces the actual amount of cash and securities that need to be transferred by 98%, achieving significant capital efficiency. Atomic settlement (T+0) is essentially real-time gross settlement (RTGS), which can lead to a loss of netting efficiency, requiring the market to find a hybrid solution between speed and capital efficiency, such as intraday buybacks. Privacy Paradox: Institutional finance relies on transaction privacy, while public blockchains (such as Ethereum) offer transparency. Large institutions cannot execute large transactions on public blockchains without being "frontrunned." Solutions include using privacy-preserving technologies such as zero-knowledge proofs or operating on permissioned blockchains (such as JPMorgan's Kinexys). Amplification of Systemic Risk: 24/7 markets eliminate the "cooling-off period" of traditional markets. Algorithmic trading and automated margin calls (via smart contracts) can trigger large-scale cascading liquidations under market stress, amplifying systemic risk, similar to the liquidity pressures during the 2022 UK LDI crisis. 2.3 Core Value of Tokenized Money Market Funds (TMMFs) The tokenization of money market funds (MMFs) is one of the most representative examples of RWA growth. TMMFs are particularly attractive as collateral: Retaining Returns: Unlike non-interest-bearing cash, TMMFs can continuously earn returns as collateral until they are actually used, reducing the opportunity cost of "collateral drag." High Liquidity and Composability: TMMFs combine the regulatory familiarity and security of traditional MMFs with the instant settlement and programmability brought by DLT. For example, BlackRock's BUIDL fund, through Circle's USDC instant redemption channel, solves the pain point of the traditional MMF redemption requiring T+1, achieving 24/7 instant liquidity. 3. The Role of DTCC/DTC in the Tokenization Process DTCC and DTC are indispensable core systemic institutions in the US financial infrastructure. The assets held by DTC are enormous, covering the vast majority of stock registration, transfer, and custody in the US capital market. DTCC and DTC are considered the "central warehouse" and "central ledger" of the US stock market. The involvement of DTCC is fundamentally key to ensuring the compliance, security, and legal validity of the tokenization process.

  3.1 Core Role and Responsibilities of the DTC

  • Identity and Scale: The DTC is responsible for central securities custody, clearing, and asset servicing. As of 2025, the DTC held $100.3 trillion in assets under custody, covering 1.44 million securities issuances, and dominated the registration, transfer, and confirmation of ownership of the vast majority of stocks in the US capital market.

  • Tokenization Bridge and Compliance Guarantee: The involvement of the DTCC represents the official recognition of digital assets by traditional financial infrastructure. Its core responsibility is to act as a trust bridge between the traditional CUSIP system and emerging tokenization infrastructure. The DTCC promises that tokenized assets will maintain the same high level of security, robustness, legal rights, and investor protection as their traditional counterparts.

  • Tokenization Bridge and Compliance Guarantee: The DTCC's involvement represents the official recognition of digital assets by traditional financial infrastructure. Its core responsibility is to act as a trust bridge between the traditional CUSIP system and emerging tokenization infrastructure.

  • Tokenized assets will maintain the same high level of security, robustness, legal rights, and investor protection as their traditional counterparts.

  Liquidity Integration: DTCC's strategic goal is to achieve a single liquidity pool between the TradeFi (traditional finance) and DeFi (decentralized finance) ecosystems through its ComposerX platform suite. 3.2 DTC Tokenization Process and SEC No-Objection Letter In December 2025, DTCC's subsidiary, DTC, obtained a landmark no-objection letter from the U.S. Securities and Exchange Commission (SEC), providing the legal basis for its large-scale advancement of its tokenization business.

  3.3 Impact of DTC Tokenization

  The approval of DTC NAL is considered a milestone in tokenization, and its impact is mainly reflected in:

  • certainty of official tokens: The tokenization of DTC means that tokenized stocks backed by the US government are coming soon. In the future, projects that tokenize US stocks may directly access DTC's official asset tokens, rather than building their own asset on-chain infrastructure.