DTCC rejects the creation of “walled gardens” to allow digital assets to flow frictionlessly between different networks.
The initial infrastructure will rely on Canton Network and AppChain, prioritizing security and client liquidity demand.
Experts debate the nature of these assets, as the tokens represent claims on securities already safeguarded by the entity.
The Depository Trust & Clearing Corporation (DTCC) has defined its vision for the future of financial asset tokenization. Nadine Chakar, the firm’s head of digital assets, assured that they are not building “walled gardens”; instead, they are betting on interoperability so that digital securities can move efficiently and without extra costs across various blockchains.
Despite the open approach, the firm maintains a cautious stance due to cybersecurity risks within the crypto ecosystem. For this reason, the strategy focuses on connecting the traditional financial system with new digital infrastructures, using messaging standards that guarantee data integrity in an environment where new Layer 1 networks appear constantly.
Security and Flexibility in Blockchain Infrastructure
To achieve successful financial asset tokenization, DTCC selected Canton Network, a permissioned blockchain designed specifically for institutions. Brian Steele, a managing director at the firm, explained that this choice responds to the need for offering after-hours financing and improving liquidity for market makers, adapting to the operational demands of Wall Street.
However, the project is not without criticism from crypto-natives, who question the fact that the tokens are not “native” to the network but rather representations of safeguarded assets. In response, DTCC reaffirms that its priority is to offer clients the freedom to choose among multiple blockchains, provided they meet rigorous security and institutional resiliency parameters.
In summary, the progress of financial asset tokenization led by DTCC marks a historic milestone in technological convergence. By integrating networks like AppChain and Canton, the organization seeks to modernize digital ownership without sacrificing regulatory compliance, allowing the global financial infrastructure to evolve toward a more agile, transparent, and, above all, interconnected model.
DTCC Says It’s Avoiding ‘Walled Gardens’ as Tokenization Push Expands - Crypto Economy
TL;DR:
The Depository Trust & Clearing Corporation (DTCC) has defined its vision for the future of financial asset tokenization. Nadine Chakar, the firm’s head of digital assets, assured that they are not building “walled gardens”; instead, they are betting on interoperability so that digital securities can move efficiently and without extra costs across various blockchains.
Despite the open approach, the firm maintains a cautious stance due to cybersecurity risks within the crypto ecosystem. For this reason, the strategy focuses on connecting the traditional financial system with new digital infrastructures, using messaging standards that guarantee data integrity in an environment where new Layer 1 networks appear constantly.
Security and Flexibility in Blockchain Infrastructure
To achieve successful financial asset tokenization, DTCC selected Canton Network, a permissioned blockchain designed specifically for institutions. Brian Steele, a managing director at the firm, explained that this choice responds to the need for offering after-hours financing and improving liquidity for market makers, adapting to the operational demands of Wall Street.
However, the project is not without criticism from crypto-natives, who question the fact that the tokens are not “native” to the network but rather representations of safeguarded assets. In response, DTCC reaffirms that its priority is to offer clients the freedom to choose among multiple blockchains, provided they meet rigorous security and institutional resiliency parameters.
In summary, the progress of financial asset tokenization led by DTCC marks a historic milestone in technological convergence. By integrating networks like AppChain and Canton, the organization seeks to modernize digital ownership without sacrificing regulatory compliance, allowing the global financial infrastructure to evolve toward a more agile, transparent, and, above all, interconnected model.