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Worth notingMarket eventThu, Oct 291 min read
Banks and asset managers gain a route to blockchain-based securities handling, with potential savings dependent on adoption and integration.
DTCC, which provides infrastructure for clearing and settling US securities trades after buyers and sellers agree a deal, has launched a tokenization service covering 34 securities and 20 financial firms. Participants include JPMorgan, Citi, Bank of America, Morgan Stanley and Fidelity.[1]
Tokenization represents securities as digital tokens on a blockchain, allowing participating institutions to record and handle those assets on a shared ledger. Separate coverage identifies Canton as the blockchain network and Ondo as a rollout partner.[2]
The live service gives participating firms a way to connect securities operations to blockchain infrastructure. Shared records could reduce the work of checking separate institutions’ books against one another, lowering post-trade processing costs, although integration and compliance also require spending. The 20 participating firms provide an initial base; benefits depend on actual usage and how well the service connects with existing systems.[1]
Canton and Ondo gain an institutional use case through the rollout. The reports provide no transaction volumes, fees or realized savings, leaving the earnings contribution to participating businesses unquantified.[1][2]
Participating firms gain a new channel for handling tokenized securities, giving peers a working example to assess. Less manual reconciliation could lower operating costs, subject to integration and compliance spending.[1]
Canton, Ondo and related technology providers have an opportunity to serve institutional integration and support needs. Revenue growth depends on usage and commercial terms that the coverage does not disclose.[2]