DTCC affirms interoperable tokenized securities, cautiously.

DTCC to issue tokenized securities on permissioned Canton Network, pledging multi-chain interoperability and strict risk controls

  • DTCC says its tokenized securities plan will be interoperable and not limited to a single blockchain.
  • Nadine Chakar emphasized risk controls and data standards as top priorities for tokenization.
  • DTCC intends to issue tokenized securities first on the permissioned Canton Network.
  • DTCC’s tokens will be tied to existing securities rather than issued as native on-chain assets, drawing criticism about control and ownership.
  • DTCC plans to support multiple blockchains, including a permissioned, Ethereum-compatible AppChain, if they meet its security and resiliency standards.

The Depository Trust & Clearing Corporation outlined its tokenized securities approach during a virtual forum on Thursday, saying the plan aims to support multiple blockchains while prioritizing risk controls and data standards. DTCC said it will issue its first tokenized securities on the permissioned Canton Network to meet client demand for after-hours financing and liquidity. The firm stressed interoperability so digital assets can move between chains without added risk or cost.

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Nadine Chakar, Global Head of DTCC Digital Assets, said the company will avoid closed systems and focus on seamless movement across chains. She warned that existing messaging standards may become less central over time but will help as new Layer 1 networks appear. "We’re not building walled gardens," she said, and added that interoperability should allow transfer of assets "without risk [or] extra expenses."

Some critics argue the tokens will remain tied to the incumbent system. Crypto lawyer Gabe Shapiro said the approach creates a true walled garden because tokenized securities are claims on DTCC‘s holdings. He noted that legal title to a large share of U.S. publicly traded stock sits with Cede & Co., an affiliate. "You don’t own the stock that is ‘tokenized’—Cede and DTCC do," he said.

DTCC also plans to offer tokens on a permissioned, Ethereum-compatible AppChain. Brian Steele, managing director and president of clearing and securities services at DTCC, said the firm will evaluate future networks on resiliency, security, and client demand and is committed to connecting to multiple blockchains. The company framed its cautious approach in the context of large cyber thefts, including incidents where bad actors have stolen billions of dollars.

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