DTCC Completes Live Tokenized Securities Trial, Eyes October Rollout

The Depository Trust & Clearing Corp. has completed a live trading test of blockchain-based tokenized securities with about 40 major Wall Street firms, including JPMorgan Chase & Co. and Goldman Sachs Group Inc.

Bloomberg reported on Aug. 12 that DTCC conducted a four-hour pilot last month with more than 40 financial institutions, including JPMorgan, Goldman Sachs, Invesco and Citadel. The test replicated real market activity on blockchain networks, including trades in stocks and Treasuries, collateral pledges, responses to margin calls and asset transfers. DTCC monitored the process from control rooms in New York and New Jersey.

Nadine Chakar, DTCC's global head of digital assets, said the company aimed to mirror the transactions that occur in markets every day. Tokenization must become part of routine operational workflows, she added.

The pilot tested a range of transaction types, including collateral pledges, margin calls, repo transactions and asset transfers across blockchains. Tokenized versions of stocks, exchange-traded funds and Treasuries were used in the trades. The infrastructure included Besu, DTCC's private blockchain, and Canton Network.

DTCC plans to roll out the service in phases starting in October. More institutions will take part from October, and additional blockchain networks will be connected. Chakar said there is no longer any doubt that the technology works, and that October marks the start of a more difficult phase.

Challenges remain before broader commercialization. Chakar said wider adoption, regulatory alignment and integration with existing systems are among the main hurdles.