Processing over 3 trillion USD in transactions annually, DTCC is exploring the possibility of stablecoin issuance, signaling an important shift on Wall Street.
The Depository Trust and Clearing Corporation (DTCC), a critical infrastructure of the US financial market, is exploring the issuance of a stablecoin, marking a major shift of Wall Street towards blockchain technology.
A spokesperson for DTCC confirmed that the organization is closely monitoring policy developments and will continue to evaluate related options. If successfully implemented, this would be a significant turning point, integrating blockchain into the traditional US financial system.
As the largest global central securities depository (CSD) and central counterparty (CCP), DTCC currently processes trading volume exceeding 3 trillion USD annually, ensuring settlement for nearly all transactions on major US stock exchanges.
DTCC is not alone in this endeavor, but an active member of several major initiatives, notably Fnality – an interbank payment token project, with participation from over 20 leading financial institutions like Nasdaq and Goldman Sachs. Fnality enables money transfers to central bank accounts and issues corresponding payment tokens.
Recently, Fnality Bank US received a testing license, paving the way for issuing tokens backed by central bank deposits, thereby eliminating the short-term monetary market risks typically seen in stablecoins backed by treasury bonds.
Additionally, DTCC is participating in the Regulated Settlement Network (RSN), an initiative by banks to develop highly interactive tokenized deposits. Tokenizing collateral assets is considered a key solution to minimize systemic risks.
Institutions can quickly fulfill variation margin obligations instantly, instead of relying on traditional payment processes limited in operating hours.
In fact, DTCC already has infrastructure ready for this. Its subsidiary Depository Trust Company (DTC), a trust organization licensed under New York banking law, currently has direct access to Federal Reserve accounts, creating favorable technical and legal conditions for issuing an institutional-standard stablecoin.
Although the Fedwire interbank payment system is not yet 24/7, the general trend is progressing strongly. With leading exchanges like CME and ICE also beginning to test tokenized collateral assets, the race to issue stablecoins specific to Wall Street's financial market is entering an intense phase.
