The DTCC Wants to Bring Private Securities to Ethereum
The DTCC is launching a blockchain platform to "digitalize and modernize private markets" in early 2022.
The Depository Trust & Clearing Corporation (DTCC) announced it is launching its new blockchain platform. The DTCC is the world's largest securities clearinghouse, settling transactions worth trillions of dollars per day. The DTCC settles most securities transactions in the United States.
The DTCC is launching a blockchain platform to "digitalize and modernize private markets" in early 2022, pending regulatory approval. The DTCC believes private markets are siloed and inefficient; their plan is to bring the efficiencies of the public market to the private market, using tokenized private market securities and the blockchain for consensus. This plan was previously brought up in 2020's Project Whitney case study, which was "focused on exploring the potential for asset tokenization and digital infrastructure to support private market securities."
The DTCC is believed to be using a private blockchain based on Ethereum. There is no token, but analysts suspect there will be some form of "gas" fees for transactions.
Not everyone is pleased to have the DTCC involved in crypto. Reddit commenters noted that the DTCC is self-regulating and has some potential for corruption.