Wall Street Giant DTCC Unveils Tokenized Collateral Platform in Crypto Push

Wall Street Giant DTCC Unveils Tokenized Collateral Platform in Crypto Push

DTCC is the latest traditional financial institution to leverage tokenization and blockchain technologies to achieve operational advantages.

Christian Sandor | Edited by Steven Alpher , 2 April 2025, 18:52 UTC

Key points:

• The Depository Trust and Clearing Corporation (DTCC) is launching a blockchain platform for managing tokenized collateral aimed at improving efficiency and enabling real-time transactions.
• The new platform aims to address the shortcomings of traditional systems by using smart contracts to automate collateral transactions, allowing for complex trades across multiple markets.
• DTCC will demonstrate the platform's capabilities at an industry event on April 23 and plans to work with regulators to establish global standards for tokenized collateral.

The Depository Trust and Clearing Corporation (DTCC), the world's largest securities settlement system, is expanding its capabilities in cryptocurrency by introducing a blockchain platform for managing tokenized collateral.

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Collateral plays a key role in risk management in financial markets, providing stability in the face of market fluctuations. However, traditional systems often suffer from inefficiencies due to fragmented infrastructure and settlement delays.

DTCC said its new platform aims to address these issues by tokenizing collateral on blockchain technology, allowing for real-time transfers and automation through smart contracts, according to a press release published Wednesday. The platform operates on DTCC's AppChain ecosystem, built on LF Decentralized Trust's Besu blockchain.

Read more: Why Asset Tokenization Is Inevitable

“Collateral mobility is the ‘killer app’ for institutional use of blockchain,” said Dan Doney, chief technology officer at DTCC Digital Assets. “By using smart contracts to automate all aspects of collateral transactions, we enable complex trade execution in real-time markets at all times, even in volatile conditions.”

“This platform is unique in that we have created something that is more open, flexible, dynamic and comprehensive than any previous digital asset initiative,” said Nadine Chakar, global head of DTCC Digital Assets.

The initiative comes amid the popularity of tokenization of traditional financial instruments such as bonds, funds and other classic investments as one of the most attractive use cases for blockchain technology. Several major financial players such as BlackRock, CME Group and Fidelity are also seeking benefits such as operational efficiency, faster settlements and increased transparency compared to traditional financial systems.

DTCC will demonstrate the platform’s functionality at “The Great Collateral Experiment” event on April 23, where industry participants will explore how tokenized assets can be used in markets. The company also announced plans to work with regulators and industry leaders to establish global standards for tokenized collateral.

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