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Announcing the outcomes of its U.S. Treasury Collateral Network tokenization trial, the Depository Trust & Clearing Corporation (DTCC) has noted “robust functionality and potential” for distributed networks.
Participating in the 10-different use case experiment were four investors, four banks, two central counterparties, and three custodians. The effort drew on the financial privacy-conscious Canton Network.
Kelly Mathieson, chief business development officer of Digital Asset, a company engaged in the pilot, said in a statement, “The successful completion of this pilot proves that tokenized assets could be leveraged to optimize collateral.”
Between June and July, the pilot tested the viability of “complex real-world transactions,” including cloning and settling a “digital twin” for U.S. Treasury. It also investigated asset recalls and real-time margin calls as part of portfolio management tools.
In hypothetical default situations, secured parties seized pledged assets and transferred ownership in atomic transactions, therefore guaranteeing legal certainty and control, DTCC said in a news statement.
Longtime blockchain champion Nadine Chakar, global head of DTCC Digital Assets, pointed out especially how much the technology “significantly” enhanced collateral optimization and liquidity.
Since at least 2020, DTCC has been experimenting with blockchain following the establishment of Project Ion, a pilot initiative aiming at testing alternative settlement systems. Every year, the company handles multiple hundreds of trillions of dollars worth of transactions.
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