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Financial Market Infrastructures Press Their Case for Blockchain

August 2, 2024 | 1 minutes reading time | By Michael Shashoua

DTCC, Clearstream and Euroclear place risk mitigation and control mechanisms within a digital-asset standardization and interoperability framework.

Although estimates vary, asset tokenization is seen as a multitrillion-dollar business opportunity ripe for the taking by a financial industry becoming increasingly conversant with distributed ledger technology. It’s still early: A DLT in the Real World survey this year by the International Securities Services Association, supported by Accenture, Broadridge and Ripple, found 37% of participants actively using the technology, and 68% of initiatives turning over less than $10 million annually.

Maturation of DLT, or blockchain, depends on factors including liquidity, regulatory clarity, and robust underlying ecosystems. The last has seen a flurry of activity among a crowd of entrepreneurial digital-native custody and settlement providers, but it is one of the leading legacy incumbents prioritizing the forging of an institutional-grade future.

Depository Trust & Clearing Corp. has been investing in and trialing what it saw as potentially disruptive blockchain initiatives for most of a decade. Last September, the global industry-owned utility teamed with two other financial market infrastructure (FMI) operators, Euroclear and Deutsche...

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Topics: Digital Assets

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