New York/London/Hong Kong/Singapore/Sydney, June 5, 2024 ‒ Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, today testified before the House Financial Services Subcommittee on Digital Assets on the potential for tokenization to transform today’s financial markets through further automation, increased efficiency and lower costs.
In today’s hearing, entitled “Next Generation Infrastructure: How Tokenization of Real-World Assets Will Facilitate Efficient Markets,” Chakar testified to the many benefits that could be offered by employing digital ledger technology in transaction processing and lifecycle management of real-world financial assets, such as tokenized securities in the U.S. markets. Chakar also discussed the challenges inherent in developing an integrated digital assets platform for the industry, noting that “technology on its own will not change the markets – it will require collaboration and coordination among all stakeholders, and it needs to be measured and thoughtful.”
Chakar also explained that DTCC recently worked with the financial industry to create a comprehensive set of risk management principles and controls designed to unlock the transformative nature of digital asset solutions. These principles will be used to guide pilots and will aim to reduce ecosystem risks and advance the merging of tokenized securities markets. The principles include legal certainty, regulatory compliance, resilience and security, safeguarding customer assets, connectivity and interoperability, and operational scalability.
DTCC has been working to advance the tokenization of traditional financial assets for close to a decade. In December 2023, DTCC acquired Securrency, now known as DTCC Digital Assets, which provides institutional-grade infrastructure and products to facilitate end-to-end lifecycle processing for tokenized traditional financial assets.
For more information, view Chakar's written testimony to the Subcommittee.
About DTCC
With over 50 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 20 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency, enhancing performance and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm innovates purposefully, simplifying the complexities of clearing, settlement, asset servicing, transaction processing, trade reporting and data services across asset classes, bringing enhanced resilience and soundness to existing financial markets while advancing the digital asset ecosystem. In 2023, DTCC’s subsidiaries processed securities transactions valued at U.S. $3 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $85 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes more than 20 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, X, YouTube, Facebook, and Instagram.
DTCC Digital Assets
DTCC Digital Assets provides institutional-grade infrastructure and products to facilitate end-to-end lifecycle processing for digital assets. Its innovative digital infrastructure enables market participants to unlock the power of institutional DeFi by accessing secure, efficient, and compliant capital markets. DTCC Digital Assets’ blockchain agnostic solutions allow for near-real-time payments and blockchain interoperability and are designed to increase global liquidity. In addition, its technology will ultimately underpin the development of DTCC’s enterprise digital asset infrastructure.