Three of the world’s largest financial market infrastructures (FMIs) have outlined an interoperability framework to improve the adoption of digital asset securities.
Clearstream, The Depository Trust & Clearing Corporation (DTCC) and Euroclear, in collaboration with Boston Consulting Group (BCG), released on 4 March their latest collaborative white paper titled “Building the Path Towards Digital Asset Securities Interoperability”.
The framework outlined three objectives: create a common taxonomy and outcome; classify initiatives, reveal coverage and identify gaps; lay down a foundation for further work.
The research identified the current challenges of achieving interoperability within the decentralized finance (DeFi) ecosystem. It also explored the different objects of interoperability across the value chain and proposed a path forward for the industry to collaborate on data standardisation, process harmonisation and roles consistency.
Nadine Chakar, managing director and global head of DTCC Digital Assets, Jens Hachmeister, managing director and head of issuer services and new digital markets at Clearstream, Isabelle Delorme, managing director and head of product strategy and innovation at Euroclear and Frédéric Brugère, managing director and partner at BCG were involved in writing the whitepaper.
The research noted: “Interoperability will be critical for the Distributed Ledger Technology (DLT) markets to be successfully scaled in the coming years. Without homogeneous treatment of assets across different infrastructures, the market may face significant challenges in adopting DLT rails at scale, potentially constraining global interoperability.”
