The Depository Trust and Clearing Coporation has unveiled two new projects, codenamed 'Ion' and 'Whitney', to experiment with asset digitalisation, distributed ledger technology and asset tokenisation for post-trade settlement in the public and private markets.
Project Ion is an extension of DTCC's ongoing efforts to modernise its core clearing and settlement processes. Developed as a proof-of-concept, the project reimagines the public markets settlement processes through the application of asset digitalisation and distributed ledger technology.
Murray Pozmanter, head of clearing agency services and global operations and client services at DTCC, says the Depository is currently engaging with the industry to assess market demand.
“Project Ion is about working with the industry to further the value proposition on accelerated settlement leveraging new capabilities such as DLT and tokenized securities, and to learn how DTCC can best deploy these technologies to deliver additional value to clients and the industry,” he says.
Separately, Project Whitney is a prototype focused on exploring the potential for asset tokenisation and digital infrastructure to support private market securities, from issuance through secondary markets.
Jennifer Peve, managing director, business innovation at DTCC, comments: “The private markets are ripe for increased levels of automation and lack much of the infrastructure that has supported the public markets for decades. Project Whitney presents an exciting opportunity to leverage emerging technologies and develop completely new solutions from the ground up."
Both Project Ion and Project Whitney remain in the experimentation stage, she stresses, and a decision to progress the projects will be determined following further analysis and feedback from the industry.