DTCC Claims “Largest” Tokenisation Production Initiative

The Depository Trust & Clearing Corporation (DTCC) says it has successfully converted assets held at The Depository Trust Company (DTC) into tokens that were then used in real production trades, “a notable milestone that marks the largest tokenisation production initiative in breadth of use cases, asset classes and number of participants”.

The event, on 15 July, featured several transactions made across various asset classes in a DTC production environment, including collateral pledge, security lending, US Treasury/repo delivery-versus-payment (DVP) trade, equity DVP trade, equity delivery-versus-delivery (DVD) trade, equity token transfer and central counterparty (CCP) margin workflows.

The transactions using DTC-tokenised securities – conducted over the course of several hours – were designed and selected to reflect real-world use cases, says DTCC, and validated the ability of its tokenisation service to provide the same resiliency, integrity, protections and operational rigor as traditional infrastructure. 
Multiple market participant firms, blockchain networks, wallets, exchanges, issuers and applications participated, including Alpaca, BetaNXT, BitGo Bank & Trust, BlackRock, Blockdaemon, BNP Paribas Securities, Broadridge, Chainlink, Circle, Citadel Securities, CME Group, Digital Asset Holdings, DriveWealth, DRW, Fireblocks, Flow Traders, FTSE Russell, Goldman Sachs, HIFI, Invesco, JP Morgan, Kaleido, Linux Foundation Decentralized Trust, Marex, Microsoft, Nasdaq, New York Stock Exchange, Ondo Finance, Prometheum Capital, S&P Dow Jones Indices, Societe Generale, State Street Investment Management, Talos, Temple Digital Group, Tradeweb, Vanguard, Velocity Capital and Virtu Financial.

“DTCC successfully showcased how tokenisation can enable real-time collateral mobility, enhance liquidity and capital efficiency, reduce counterparty risk and support interoperability between traditional and digital ecosystems,” says Brian Steele, president of clearing & securities services at DTCC. “Market participants will soon have the best of both worlds because DTC-tokenized assets maintain the same investor protections, entitlements and ownership rights as traditional securities, all while enabling greater efficiency, programmability and security.”

Nadine Chakar, global head of digital assets at DTCC, adds, “Innovation requires collaboration. DTCC demonstrated that the safest, most direct path to decentralisation runs through trusted financial market infrastructures and that legacy and Web3 ecosystems can coexist without disruption.”