DTCC Works With Layer-1 Blockchains to Tokenize Corporate Actions

The Depository Trust & Clearing Corporation (DTCC) is partnering with layer-1 blockchains to bring millions of corporate actions, including dividend payments, onto the blockchain, according to DTCC CEO Frank La Salla. The initiative aims to leverage high-performance blockchain networks to streamline the processing and settlement of corporate actions onchain, though the clearing giant noted that challenges remain in the implementation process.

DTCC’s Blockchain Initiative

DTCC, one of Wall Street’s critical financial infrastructure providers, is actively exploring how distributed ledger technology can enhance the settlement of corporate actions. The effort targets the tokenization of financial events that currently operate through traditional clearinghouse systems, with the goal of processing millions of such transactions onchain.

Technology Requirements

The initiative focuses on identifying and working with layer-1 blockchains that meet performance standards required for large-scale financial operations. The selection criteria emphasize high-performance capabilities necessary to handle the volume and speed requirements of corporate action settlements.