DTCC Explores Further Digitalisation in Public & Private Markets

Project Ion seeks to further optimise the settlement process in public markets. Project Whitney explores the use of asset tokenisation and digital infrastructure to support private markets.

DTCC (The Depository Trust & Clearing Corporation) has unveiled new plans to explore the benefits of digitalisation in the public and private markets and whether new technologies can strengthen post-trade processes and reduce risks and costs.

DTCC’s proposals are contained in two case studies that advance its efforts to examine the potential use of DLT (distributed ledger technology), asset digitalisation and other emerging technologies to enhance post-trade processes.

“These case studies reimagine the private markets lifecycle and the public markets settlement processes, and they could significantly modernise and enhance how trading activity is processed in the future,” said DTCC President & CEO Mike Bodson.

Project Ion (download) seeks to build on DTCC’s efforts in recent years to further optimise the settlement process in the public markets. The project explores whether the digitalisation of assets and application of DLT and tokenised securities can accelerate settlement and reduce cost and risk for the industry.

As part of the effort, DTCC is proposing a future vision of an alternative digital settlement service, with the potential to offer accelerated settlement while retaining the advantages of central netting and preventing fragmentation of the clearing and settlement ecosystem.

DTCC has developed a POC (proof of concept) to validate its proposed business and operational concepts and is now engaging the industry to assess market demand.

Project Whitney (download) considers opportunities to provide increased levels of digitalisation throughout the private market asset lifecycle, given that private market operating functions are still largely manual and lack the levels of efficiency seen in public markets.

A prototype has been developed to explore the potential for asset tokenisation and digital infrastructure to support private market securities, from issuance through secondary markets.

DTCC is working with the industry to validate Project Whitney’s key concepts and workflows. The multi-phase project will assess the practical and commercial viability and value of a modern digital infrastructure supporting private market securities.

Both Project Ion and Project Whitney remain in the experimentation stage, and a decision to progress the projects will be determined following further analysis and feedback from the industry.

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