The DTCC Collateral Appchain wants to rewrite the rules of TradFi settlement
The post The DTCC Collateral Appchain wants to rewrite the rules of TradFi settlement appeared on BitcoinEthereumNews.com.
This is a segment from the 0xResearch newsletter. To read full editions, subscribe. When you see pro-crypto people declaring on Twitter that “blockchains will replace TradFi,” what that specifically means is the disruption of the DTCC (Depository Trust & Clearing Corporation) as the canonical post-trade clearing and settlement house for US securities markets. The DTCC is owned by a consortium of the world’s biggest banks. The company has a monopoly on securities settlement, clearing something like $9 trillion to $11 trillion in value daily. The idea that the DTCC would use a blockchain would’ve been laughable just several years ago. It was expected that the incumbents would be too slow or too skeptical of the tech to adapt. Well, not anymore. The Depository Trust & Clearing Corporation (DTCC) announced earlier this month that it was creating a new platform, “Collateral AppChain,” for “tokenized real-time collateral management.” In the DTCC’s “Great Collateral Experiment” hands-on demo, they explained how its Collateral Appchain could be used to mobilize treasuries, equities, tokenized money market funds and even cryptoassets globally in real time – free of settlement or liquidity constraints. You can watch it here for yourself. It reminded me of some of the earliest “enterprise blockchain” efforts like JPMorgan demoing Quorum back in 2016. Except this time, it’s more than a proof of concept. The DTCC team demonstrated how its Collateral Appchain would improve upon its antiquated T+X settlement processes to a real-time model where firms no longer face liquidity bottlenecks due to constraints around market hours or needing to hold extra collateral as a buffer while waiting for settlement. Translation: We recognize the merits of blockchains, we are updating our outdated technology to blockchain rails, and you don’t have to use Ethereum. Or, as Galaxy Research’s Thad Pinakiewicz notes: “The DTCC is trying…
Filed under: News - @ April 25, 2025 5:27 pm