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DTCC Taps L1s to Tokenize Corporate Actions
DTCC CEO Frank La Salla says Wall Street’s clearinghouse is working with “high-performance” layer-1 blockchains to move corporate actions like dividends + tender offers onchain.
Why It Matters
* Scale: DTCC processes ∼$20T in US securities trades daily. “We process millions of dividend payments a day”
* Problem: Current blockchains take days to process corporate actions. Need faster, resilient L1s
* Timeline: Tokenized securities platform testing starts July, broader rollout targeted October
Key Use Case: Tokenized Collateral
> 24/7 Liquidity: Firms outside US hours could access dollars in real-time without legacy settlement windows
> Example: Asia firm posts tokenized collateral onchain Sunday in NY to get USD instantly
> La Salla: “That is incredibly powerful”
Remaining Hurdles
^ Scalability: Blockchains still need to handle institutional volume
^ Liquidity Fragmentation: “Blockchain is decentralized… Many efficiencies we get are through concentration of liquidity”
^ Netting Loss: Traditional systems compress trades into smaller settlements, cutting capital needs. Decentralization risks that efficiency
#DTCC #FrankLaSalla #TokenizedSecurities #CorporateActions #InstitutionalBlockchain
DTCC CEO Frank La Salla says Wall Street’s clearinghouse is working with “high-performance” layer-1 blockchains to move corporate actions like dividends + tender offers onchain.
Why It Matters
* Scale: DTCC processes ∼$20T in US securities trades daily. “We process millions of dividend payments a day”
* Problem: Current blockchains take days to process corporate actions. Need faster, resilient L1s
* Timeline: Tokenized securities platform testing starts July, broader rollout targeted October
Key Use Case: Tokenized Collateral
> 24/7 Liquidity: Firms outside US hours could access dollars in real-time without legacy settlement windows
> Example: Asia firm posts tokenized collateral onchain Sunday in NY to get USD instantly
> La Salla: “That is incredibly powerful”
Remaining Hurdles
^ Scalability: Blockchains still need to handle institutional volume
^ Liquidity Fragmentation: “Blockchain is decentralized… Many efficiencies we get are through concentration of liquidity”
^ Netting Loss: Traditional systems compress trades into smaller settlements, cutting capital needs. Decentralization risks that efficiency
#DTCC #FrankLaSalla #TokenizedSecurities #CorporateActions #InstitutionalBlockchain
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