The Depository Trust and Clearing Corporation (DTCC) announced on Wednesday it’s diving deeper into crypto with a blockchain-based platform for tokenized collateral management, aiming to bring efficiency and real-time operations to the forefront.
DTCC’s new platform seeks to address challenges in traditional systems by tokenizing collateral on blockchain rails, enabling real-time transfers and automation through smart contracts. The platform operates within DTCC’s AppChain ecosystem, built on LF Decentralized Trust’s Besu blockchain.
DTCC Digital Assets CTO Dan Doney stated, “Collateral mobility is the ‘killer app’ for institutional use of blockchain,” further noting that the platform’s use of smart contracts automates collateral operations, facilitating complex trade execution across markets in real-time, even during volatile conditions.
According to Nadine Chakar, global head of DTCC Digital Assets, this platform stands out for being “more open, flexible, dynamic, and comprehensive than any previous digital collateral initiative.”
The move by DTCC aligns with a growing trend of tokenizing traditional financial instruments. Firms like BlackRock, CME Group, and Fidelity are also exploring blockchain to leverage operational efficiencies, faster settlements, and increased transparency.
DTCC will showcase the platform’s capabilities at “The Great Collateral Experiment” event on April 23. The company also plans to collaborate with regulators and industry leaders to establish global standards for tokenized collateral.