The Depository Trust & Clearing Corp. (DTCC), a major U.S-based clearinghouse known for processing $2,500 trillion worth of securities transactions annually, is making a significant move into the world of digital assets.
Further, the company has announced its agreement to acquire Securrency, an institutional blockchain infrastructure provider, in a strategic move to expand its capabilities in the digital asset space.
Securrency Becomes DTCC’s Subsidiary
As part of this acquisition, Securrency will become a fully-owned subsidiary of DTCC and operate under the name “DTCC Digital Assets.” Additionally, this move underscores the growing convergence between traditional financial (TradFi) systems and blockchain technology.
Further, banks and asset managers are increasingly looking to tokenize real-world assets (RWA), which is the practice of moving traditional assets like private equity, credit, and real estate onto blockchain platforms to enhance efficiency and reduce transaction costs.
The Significance of Tokenization
Tokenization has become a pivotal area within the crypto and blockchain ecosystem, with the potential to revolutionize how traditional financial assets are managed. In addition, by tokenizing assets, these assets are moved to blockchain infrastructure, enabling more efficient operations and more cost-effective transactions.
According to a report from digital asset manager 21.co, the market for tokenized assets could grow significantly, potentially reaching between $3.5 trillion and $10 trillion by 2030.
A Vision for the Future
Furthermore, Securrency’s CEO, Nadine Chakar, who previously served as the head of digital at asset management giant State Street, expressed her excitement about the acquisition. She stated,
“We are excited to bring together DTCC’s infrastructure capabilities with Securrency’s technology to embrace a future where the digitization of capital markets is at the forefront of innovation.”
Chakar believes that the collaboration will open up new opportunities to reimagine compliance, liquidity, efficiency, and interoperability in trading real-world assets on the blockchain. However, the press release did not specify the purchase price. Reports suggest it was around $50 million. This signifies the importance of this move for DTCC’s future.
Fruther, this acquisition positions DTCC as a significant player in the digital asset space, ensuring that traditional and blockchain-based financial systems can coexist and expand together. Lastly, it showcases the broader trend of financial institutions integrating blockchain technology to enhance their operations and adapt to the changing landscape of finance.
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