DTCC Launches Tokenized Collateral Platform for Institutional Markets
DTCC, a leading global financial infrastructure provider, has introduced a tokenized collateral platform to streamline collateral movement and increase capital efficiency.
On April 2, DTCC (Depository Trust & Clearing Corporation) unveiled a new platform for digital collateral management, integrating traditional finance with DeFi. DTCC’s platform uses AppChain, marking its first industry use for institutional DeFi, the company said in a press release.
The tokenized collateral platform by DTCC will debut on April 23 in a live event, The Great Collateral Experiment, featuring industry leaders.
It will run on the DTCC AppChain, a private blockchain built on LF Decentralized Trust’s Besu blockchain, providing the foundation for tokenized collateral management. This approach leverages smart contracts and tokenized assets to enhance liquidity, streamline operations, and offer control over data privacy.
Nadine Chakar, Global Head of DTCC Digital Assets, said the goal is to highlight how the corporation can enable real-world, institutional-grade digital collateral market infrastructure. She added that DTCC plans to set the standard for tokenized collateral across global jurisdictions by working with regulators and the industry.
DTCC Digital Assets CTO Dan Doney mentioned that collateral mobility is a killer app for the institutional use of blockchain, explaining:
By using smart contracts to automate the full range of collateral operations, we enable complex trade execution across markets in real-time at any time, even in volatile conditions.
The Growing Trend of Tokenization in Traditional Finance
Tokenizing real-world assets – essentially creating digital representations of them on a blockchain – enables these assets to be managed, transferred, and settled on-chain. This marks a significant step in integrating capital markets with blockchain infrastructure.
In October 2024, DTCC launched DTCC Digital Launchpad to bring together financial market participants and explore ways to accelerate the adoption of digital assets. According to the corporation's estimates, the tokenized securities market could reach $16 trillion by 2030, driven by its ability to optimize collateral management.
DTCC is not alone in developing tokenization solutions for TradFi. Visa is expected to launch its tokenized asset platform this year, while Bosera Asset Management and HashKey Capital recently announced the launch of the world’s first tokenized money market ETFs.
The trend of institutional use of tokenization continues as more financial firms turn to blockchain to modernize asset movement and improve capital efficiency.
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