The Depository Trust & Clearing Corporation (DTCC) is preparing to showcase a new blockchain-based platform for digital collateral management. The initiative, announced in a DTCC press release, is designed to support real-time collateral transfers across traditional and digital markets using tokenised assets.
A live demonstration, titled “The Great Collateral Experiment”, will take place on 23 April. The event will feature a range of market participants and asset types, aiming to test the platform’s potential to improve collateral mobility and operational efficiency. It is the first major project to be developed on DTCC’s Digital Launchpad, a blockchain ecosystem introduced in October 2024.
Collateral fragmentation
Collateral plays a key role in managing counterparty risk, but its movement across financial systems remains constrained by fragmented infrastructure. DTCC’s new platform aims to address this by using distributed ledger technology to automate and accelerate the transfer of collateral between parties.
The platform is built on the DTCC AppChain, which runs on LF Decentralized Trust’s Besu blockchain. According to DTCC, this setup allows for more granular control over data, privacy, and access. It also supports integration with existing systems through open architecture and industry-standard frameworks.
Institutional use of blockchain
DTCC describes collateral mobility as a practical application of blockchain in institutional finance. By using smart contracts to automate workflows, the platform is intended to handle complex, cross-market transactions in near real-time, including during periods of market stress.
While the current focus is on the demonstration phase, DTCC says the project will continue to evolve, with further development planned in collaboration with regulators and market participants. The long-term objective is to help establish industry standards for tokenised collateral and create a more interconnected post-trade environment.
