DTCC has launched the first-leg of its tokenization service.
The DTCC (Depository Trust & Clearing Corporation) has officially started its tokenization platform for transferring and settling securities and collateral onchain.
Around 50 initial launch partners and TradFi supporters are helping this project with the next full-scale rollout planned for October.
Tokenization Of Real World Assets – Is This Time For Institutional Digital Assets?
The DTCC is one of the largest traditional finance infrastructures dedicated to maintaining the flow and exchange of derivatives and securities from financial institutions around the world.
As part of this, the leadership team has hinted for a while that tokenziation as a technology will very soon become part of daily operations for faster settlement and liquidity.
Today marks the day when the hard work shows what is possible.
Nadine Chakar, Head of Digital Assets at DTCC, expressed in an interview that they intend to “prove the value of tokenization” in collaboration with their partners.
Included in the launch day were various use-cases from some of the top names in finance.
J.P. Morgan converted the Invesco QQQ Trust ETF into a tokenized representation, as well as posted collateral for CME margin requirements. Additionally, Citadel Securities and Societe Generale participated to tokenize U.S. Treasuries in a DvP (Delivery vs. Payment). Many other institutions are expected to take part.
Also, some digital asset providers helping build out the underlying blockchain infrastructure that is enabling tokenization of stocks and equities were included in the production. Namely, Ondo Finance was able to tokenize public shares of Circle (CRCL) and SP500 SPY ETF.
