DTCC launches blockchain platform for tokenizing collateral

The Depository Trust & Clearing Corporation (DTCC), a cornerstone of global financial market infrastructure, launched a platform for tokenized real-time collateral management on Wednesday, according to a blog post . The move is a step forward for the institutional embrace of DeFi.

The so-called AppChain will be demoed at the DTCC’s upcoming "Great Collateral Experiment" on April 23. The platform is designed to increase the mobility and velocity of global collateral movements, improve capital efficiencies and liquidity and "enable an open digital liquidity ecosystem for market participants to deploy digital applications." 

AppChain is built on LF Decentralized Trust’s Besu platform, an enterprise-grade, open-source Ethereum client designed to facilitate the development and deployment of blockchain solutions for businesses.

DTCC argues that rising market complexity and cost pressures have intensified the need for efficient, high-quality collateral solutions. By tokenizing collateral, the company aims to unlock operational efficiencies by enhancing the speed at which collateral can move between traditionally "siloed" systems.

"Our goal is to highlight how we can enable real-world, institutional-grade digital collateral market infrastructure," Nadine Chakar, global head of DTCC Digital Assets, said in a statement. "This platform is unique in that we've created something that’s more open, flexible, dynamic, and comprehensive than any previous digital collateral initiative."

Dan Doney, chief technology officer of DTCC Digital Assets, added that collateral mobility is the "killer app" for institutional blockchain use. He noted that smart contracts enable automated, real-time collateral operations even in "volatile conditions."

DTCC is a foundational part of the modern economy. The firm and its subsidiaries process quadrillions of dollars in securities transactions annually.