The Depository Trust & Clearing Corporation (DTCC) and Digital Asset report that their digital security pilot has succeeded.
The two entities partnered on the US Treasury (UST) Collateral Network Pilot. This project sought to utilize distributed ledger technology (DLT) applications to support market connectivity across the collateral management lifecycle of tokenized assets. The pilot included four investors, four banks, two central counterparties, three custodians/collateral agents, and a central securities depository operated fourteen Canton nodes, connecting four types of cross-application transactions through ten distributed applications. The Pilot used DTCC’s LedgerScan solution to support tracking and governance of the assets. According to the duo, participants successfully executed 100 transactions, demonstrating “robust functionality and potential.”
Kelly Mathieson, Chief Business Development Officer at Digital Asset, said the pilot proved that tokenized assets provide efficiencies and improved market transparency.
“This pilot successfully demonstrated the power of tokenization – and its potential to enhance collateral mobility and unlock liquidity,” said Nadine Chakar, Global Head of DTCC Digital Assets. She added that the pilot highlights DTCCs commitment to partner and harness DLTs capabilities.”
Most blockchain pilots focus on completing transactions, in this situation it was extended to include default explained Jenny Cieplak, a partner at global law firm Latham & Watkins.
“Blockchain represents the next step in the evolution of securities books and records maintained by broker-dealers, much the way record-keeping previously evolved to cloud-based platforms,” she added.
