DTCC, a Major U.S. Securities Settlement Firm, to Begin Tokenization of $114 Trillion in Assets - Reports

Key Points of This Article

• Targeting Russell 1000 and U.S. Treasuries
• NYSE also plans similar infrastructure development

DTCC Takes Action

On the 25th, the Depository Trust & Clearing Corporation (DTCC), the central agency responsible for securities settlement and clearing in the U.S., announced that it will soon launch a blockchain-based tokenization service for assets worth approximately $114 trillion handled by its infrastructure. This was revealed by Frank La Salla, the company's CEO, and reported by Coin Bureau and others.

DTCC plays a crucial role in recording rights and completing settlements after securities transactions, distinguishing itself from startups in the proof-of-concept stage. The company has been conducting validations in a sandbox called Digital Launchpad, and this new service signifies a shift from the proof-of-concept stage to infrastructure development.

It should be noted that the publicly announced $114 trillion represents the overall scale of assets managed by the company's system, and not everything will be tokenized on the first day of operation. Due to the need for alignment with existing systems and regulatory compliance, a phased rollout is expected.

Other Companies Also Developing Infrastructure

The tokenization service that DTCC will launch next month will target components of the Russell 1000 index, major stock index-linked ETFs, and U.S. Treasuries (short-term securities, medium-term bonds, and long-term bonds). Deutsche Bank has indicated that the tokenized capital market is expected to become a core part of financial infrastructure by the 2030s.

The New York Stock Exchange is also planning to build a tokenized securities infrastructure that supports 24/7 trading and instant settlement. Additionally, the U.S. SEC approved a temporary exemption last week allowing trading of tokenized stocks on certain platforms.

The development of a distribution infrastructure for tokenized securities is progressing concurrently among multiple entities.