The Depository Trust & Clearing Corporation (DTCC), Digital Asset Holdings (Digital Asset) and the Canton Network have partnered to enable the tokenisation of The Depository Trust Company (DTC) custodied assets on the Canton Network.
The announcement comes after DTCC secured SEC no-action relief, enabling it to begin bringing DTC-custodied assets on-chain.
“DTCC’s partnership with Digital Asset and the Canton Network is a strategic step forward as we collaborate across the industry to build a digital infrastructure that seamlessly bridges the traditional and digital financial ecosystems and provides unmatched scalability and safety,” said Frank La Salla, CEO of DTCC.
Through the collaboration, DTCC plans to enable a subset of the US Treasury securities custodied at the DTC to be represented on the Canton Network.
Through a phased roadmap, the partnership will first introduce tangible benefits to market participants by providing access to digitised financial instruments in a secure environment.
“This effort builds upon DTCC’s prior collateral mobility experiment and is part of the firm’s broader strategy to advance a secure, transparent and interoperable digital asset ecosystem that leverages the full potential of blockchain technology across network providers while ensuring the resiliency and safety of traditional markets.” said Brian Steele, managing director, president, clearing and securities services at DTCC.
It is anticipated that adoption of tokenised securities could generate significant operational and financial efficiencies across market participants, including major market makers and hedge funds, according to DTCC.
