The Depository Trust & Clearing Corporation (DTCC) has joined the ERC3643 Association – the advocate group for the ERC3643 token standard.
ERC3643 was created by Tokeny, a leading digital security enabler based in Luxembourg.
Luc Falempin, CEO of Tokeny, said that having “DTCC join the ERC3643 Association will “help shape a truly open and interconnected financial system, where every service connects, every asset moves seamlessly, and every silo disappears.”
The standard is a movement for tokenization or taking real world assets (RWAs) and turning them into digital assets.
DTCC said it is adding ERC3643 support to its platform and will support the issuance of digital assets using the standard.
DTCC’s platform is enormous and used globally to process securities transactions. In 2023, DTCC’s subsidiaries processed securities transactions valued at U.S. $3 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $85 trillion.
Tokeny has worked with large institutions to tokenize securities as financial services transition away from analog to digital.
Nadine Chakar, Global Head of DTCC Digital Assets, described the announcement as another milestone in their strategy to “engage best-in-class technologies to build the next generation of financial market infrastructure.”
While joining the standard strongly indicates support, this does not preclude DTCC from incorporating other standards.
By digitizing assets, settlement can become immediate and transactions secure while automating certain processes thus reducing cost while mitigating risk. Tokenization can also lead to a new era of digital assets and RWAs that were previously difficult to issue and trade due to intrinsic frictions in legacy operations.