A new joint paper from Clearstream, the Depository Trust & Clearing Corporation (DTCC), and Euroclear warns that the rapid proliferation of Distributed Ledger Technology (DLT) networks is driving rising cost, operational risk and liquidity fragmentation across post‑trade processes – and that only a coordinated push for interoperability will allow digital asset securities (DAS) to scale.
The three financial market infrastructures (FMIs) argue that “interoperability is a prerequisite for DAS adoption at scale”, citing mounting frictions as assets, cash and workflows become trapped in isolated DLT silos. As one excerpt puts it, “operational costs are high, liquidity is fragmented, and both operational and regulatory risks remain while volume increases.” They warn that without harmonised treatment of assets across infrastructures, the market risks embedding fragmentation into the foundations of digital finance.
A continuation of the industry’s risk‑management agenda
A continuation of the industry’s risk‑management agenda, the paper – co‑authored with Boston Consulting Group – builds on the group’s 2024 publication that introduced the Digital Asset Securities Control Principles (DASCP), a framework designed to ensure legal certainty, operational resilience and regulatory alignment for tokenised markets. That earlier work has since been adopted by multiple institutions as a baseline for safe experimentation.
This new paper extends that agenda from risk management to market architecture, setting out a vision for how traditional finance (TradFi) and decentralised finance (DeFi) processes can be mapped to one another. It’s authors argue that FMIs – as the entities that already provide trust, finality and operational resilience in today’s markets – are best placed to anchor this transition.
A framework built on five foundations
To achieve interoperability “with trust and at scale,” the paper identifies five fundamental components that must be aligned across networks: assets and liabilities; ownership recognition, asset lifecycle and movement protocols, ledgers; and legal and regulatory compliance.
The FMIs call for data standardisation, process harmonisation, and consistent roles assignment across these foundations – echoing the decades‑long standardisation journey that shaped modern post‑trade infrastructure. As the paper notes, “minimum harmonisation of data, roles and processes” is essential to ensure predictability and eliminate reconciliation disputes.
Nadine Chakar, head of Digital Assets at DTCC, captures the message succinctly: “Interoperability is the cornerstone for digital assets adoption and scalability. Participants must focus on data, standards, and sound risk management as common objectives to bridge TradFi and DeFi with integrity, security, and trust.”
Custody case study: mapping TradFi and DeFi
The paper includes several practical use cases, with custody highlighted as a core example of how interoperability can translate into real‑world efficiency. Today, fragmented ledgers and inconsistent account structures create gaps in reconciliation and unclear responsibilities. The FMIs propose a model in which custody and settlement rules are harmonised to ensure consistent servicing, security and contract identifiers are recognised across chains and data‑access rules define who can attest to holdings.
More advanced scenarios, such as multi‑tier custody chains, would require ultimate beneficial owner traceability, smart‑contract‑embedded controls, and on‑chain/off‑chain protocols to maintain serviceability across hybrid environments.
Additional use cases
The paper also outlines similar interoperability requirements for asset lifecycle management and corporate actions, where cross‑ledger entitlements, event synchronisation and contract versioning become critical as positions span multiple chains.
