The U.S. Securities and Exchange Commission (SEC) has granted approval to WisdomTree for immediate and around-the-clock trading of blockchain-based treasury securities, marking a significant advancement in the use of blockchain technology on Wall Street. This development is expected to accelerate the growth of the nearly $10 billion tokenized treasury market, led by major financial firms such as BlackRock and Circle. WisdomTree, a prominent financial institution, has enabled investors to break free from traditional market constraints by facilitating uninterrupted and instantaneous trading of treasury bonds and other government securities. This initiative aims to make investment processes more transparent, faster, and efficient. Utilizing blockchain technology also enhances transaction verification and record security, thereby boosting market confidence. The tokenized treasury market has rapidly gained traction in recent years, with substantial investments from firms like BlackRock and Circle providing a strong foundation by converting traditional financial assets into digital tokens tradeable on blockchain networks. This approval reflects the growing trend of adopting innovative technologies in financial markets, expected to lead to more accessible and cost-effective financial transactions in the future. However, challenges related to security risks and regulatory issues associated with blockchain and tokenization remain potential concerns for investors. Overall, the SEC’s approval represents a pivotal milestone in Wall Street’s efforts to integrate blockchain technology, potentially reshaping the future of financial markets.
Source: coindesk
