The Depository Trust & Clearing Corporation (DTCC) has introduced DTCC Digital Launchpad, a sandbox aimed at encouraging collaboration across the financial industry to help accelerate the adoption of digital assets. The move comes as tokenised securities are seen as a major opportunity, but a fragmented approach has slowed progress.
DTCC Digital Launchpad is designed to bring together financial firms, technology providers, and other stakeholders in a shared space to work on practical solutions for adopting digital assets. By creating an open platform, DTCC aims to address key hurdles that have hindered the widespread use of digital technologies in the market.
“DTCC Digital Launchpad will bring together players from across financial markets to address the real challenges of adopting digital asset technology,” says DTCC president and CEO Frank La Salla. He pointed out that, as a major industry infrastructure provider, DTCC is in a position to drive collaboration and help build a secure and efficient digital asset market, similar to what exists for traditional securities.
The potential of tokenised assets is huge, with estimates suggesting up to US$16 trillion in tokenised securities by 2030. But despite this promise, differing standards and fragmented operational processes have kept digital asset initiatives from reaching critical mass. DTCC’s sandbox is positioned as a way to help unite the industry behind shared infrastructure and standards.
Tipping point
Nadine Chakar, global head of DTCC Digital Assets, noted that the financial industry has reached a tipping point in its journey toward adopting digital assets. According to her, the current piecemeal approach has made progress slow and inconsistent. The goal of the Digital Launchpad, she said, is to build secure, scalable systems that can be put into practical use by the wider industry.
The platform will provide firms with access to distributed ledger technology (DLT) infrastructure and other tools to start working with digital assets without having to build their own systems. The focus is on interoperability, data harmonisation, and the potential for pilot projects that can be scaled up across the industry.
Testing the waters
In addition to launching the sandbox, DTCC shared results from a recent proof-of-concept led by Japan Securities Clearing Corporation (JSCC). The project looked at how tokenisation could be used to improve collateral management by automating processes like margin calls with digital assets and smart contracts. JSCC president and CEO Konuma Yasuyuki highlights that using DTCC’s blockchain infrastructure allowed them to fast-track the project and focus on improving their business processes.
DTCC plans to announce the first set of pilots through the Digital Launchpad in early 2025, starting with a group of participants working together on solutions for key industry challenges. The sandbox offers a space for firms to collaborate on digital asset initiatives, with DTCC hoping it will help build the infrastructure needed to support a broader shift to digital markets.
