DTCC Announces Results of U.S. Treasury Collateral Network Tokenization Pilot

The Depository Trust & Clearing Corporation (DTCC) has reported findings from its U.S. Treasury Collateral Network tokenization pilot, highlighting "robust functionality and potential" for distributed networks.

Pilot Participants

The experiment involved:
– Four investors
– Four banks
– Two central counterparties
– Three custodians

The Canton Network, which focuses on financial privacy, facilitated the effort.

Key Insights

Kelly Mathieson, Chief Business Development Officer at Digital Asset, stated:
> "The successful completion of this pilot proves that tokenized assets could be leveraged to optimize collateral."

Pilot Details

Conducted from June to July, the pilot aimed to assess the feasibility of:
– Cloning and settling a "digital twin" for U.S. Treasuries
– Real-time margin calls
– Asset recalls
– Other portfolio management services

DTCC explained that in hypothetical default scenarios, secured parties could seize pledged assets and transfer ownership through atomic transactions, ensuring legal certainty and control.

Nadine Chakar, a blockchain advocate and global head of DTCC Digital Assets, emphasized that the system "significantly" improved liquidity and collateral optimization.

Background

DTCC has been exploring blockchain technology since at least 2020 through initiatives like Project Ion, which aimed to test alternative settlement methods. The company clears transactions worth hundreds of trillions of dollars each year.