The Depository Trust & Clearing Corporation (DTCC) is launching a real-time DLT platform for managing tokenized collateral, showcasing the potential of blockchain technology to enhance liquidity and efficiency in financial operations.
DTCC, the world’s largest post-trade, clearing, and settlement organization, announced the launch of a real-time blockchain-based collateral management platform. The new solution will be unveiled on April 23 during The Great Collateral Experiment, an event that will feature a variety of financial asset types.
The platform is built on DTCC AppChain infrastructure and DTCC Digital Launchpad, an industry sandbox introduced by the company in October 2024. It will operate on LF Decentralized Trust’s Besu blockchain and use ComposerX to ensure high levels of privacy, security, and data control.
ComposerX is an end-to-end solution for financial institutions, bridging traditional and digital infrastructure and enabling digital asset management throughout the entire lifecycle.
According to Nadine Chakar, Global Head of DTCC Digital Assets, the platform features a flexible and open architecture, allowing TradFi market participants to build and deploy their own DLT applications for collateral management. “We plan to continue building on this collateral model, engaging with the industry and our regulators to develop the standard for tokenized collateral across global jurisdictions, working with the buy-side to give them more direct market access,” she stated.
Key benefits of DTCC’s new platform include:
- enhanced speed and mobility of collateral assets;
- improved capital efficiency and liquidity;
- creation of a unified digital ecosystem bridging traditional and digital assets.
Dan Doney, Chief Technology Officer of DTCC Digital Assets, emphasized that smart contract-driven automation enables complex, real-time collateral operations even under market volatility. He believes the new solution has the potential to fundamentally transform institutional collateral management.
DTCC representatives maintain that tokenization can revolutionize outdated and fragmented collateral processes, delivering transparency and automation at a global scale. The company continues to test blockchain for data management, explore tokenized asset settlements, develop the foundation for a global tokenization ecosystem, and conduct pilot programs involving tokenized U.S. Treasury securities as collateral.
