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DTCC Sets Plan to Tokenize 1.4 Million DTC-Eligible Securities With Opt-In Conversion

DTCC will begin on permissioned networks to boost collateral mobility, using burn-and-reissue for moves between chains.

Overview

  • DTCC executives said investors could make any DTC-eligible asset digitally eligible and convert in about 15 minutes on an opt-in basis.
  • Initial focus is collateral optimization with atomic settlement and 24/7 collateral movement, including support for tokenized cash via stablecoins or deposits.
  • The first issuances will run on Canton Network, with an Ethereum-compatible AppChain to follow, as DTCC evaluates additional networks on resiliency, security and client demand.
  • The firm rejects cross-chain bridges for security reasons, committing instead to an orchestration layer that burns tokens on one chain and reissues them on another.
  • DTCC says tokenized representations will preserve existing ownership rights and bankruptcy treatment, and reporting indicates earlier SEC actions enabled controlled pilots.