The Depository Trust & Clearing Corporation (DTCC) has launched a new tokenized real-time collateral management platform, signaling a major institutional commitment to decentralized finance infrastructure in the United States.
The initiative is built as an AppChain and represents the first industry-wide use of a blockchain-native financial network to facilitate digital asset-backed collateral operations across markets.
Institutional Backbone Embraces Blockchain Infrastructure
DTCC’s platform introduces a live digital collateral system that enables near real-time settlement and automated collateral operations via smart contracts. Built on LF Decentralized Trust’s Besu blockchain and supported by DTCC ComposerX, the system operates as part of the broader DTCC Digital Launchpad ecosystem introduced in October 2024.
According to the organization, the platform will be publicly demonstrated on April 23 during “The Great Collateral Experiment,” a live showcase of cross-market use cases.
The new approach aims to address long-standing inefficiencies in collateral workflows by streamlining asset movement across historically siloed infrastructure. As DTCC’s Global Head of Digital Assets, Nadine Chakar, stated, the model provides a more open, flexible, and institutionally viable framework than earlier digital collateral pilots. Chakar said,
“We plan to continue building on this collateral model, engaging with the industry and our regulators to develop the standard for tokenized collateral across global jurisdictions.”
CTO Dan Doney further emphasized that real-time collateral mobility represents a “killer app” for blockchain in traditional finance, potentially unlocking liquidity during volatile conditions without compromising operational integrity.
DTCC processed $3 quadrillion in securities transactions in 2023 and holds custody of over $85 trillion in assets, making its endorsement a landmark moment in the broader adoption of tokenized systems.
DTCC’s launch is emblematic of a broader movement across the US financial sector to integrate blockchain-based tokenization. The market for tokenized real-world assets surpassed $19 billion, up from $10 billion a year prior. Tokenized US Treasuries alone have reached $4.9 billion in value, and tokenized private credit now exceeds $12.4 billion.
Parallel initiatives from financial giants, including BlackRock, JP Morgan, Apollo, and Franklin Templeton, reinforce the institutional shift. BlackRock’s USD Institutional Digital Liquidity Fund is approaching $2 billion in assets under management, while Apollo launched a tokenized private credit vehicle spanning six blockchain networks.
Regulatory Foundations Enable Institutional Participation
The platform’s timing coincides with increased regulatory clarity in the US. The Lummis-Gillibrand Act and the Digital Commodity Exchange Act, both passed in 2024, provided clearer asset classification rules, granting the Commodity Futures Trading Commission (CFTC) primary oversight of most digital assets.
The rollback of SEC Staff Accounting Bulletin 121 has also reduced custody-related restrictions, making it easier for traditional institutions to hold tokenized assets without incurring balance sheet penalties.
DTCC’s stated intent to engage with global regulators and define interoperable standards suggests a sustained effort to align technical innovation with evolving legal frameworks. Chakar noted that the group is working to establish the regulatory and legal architecture necessary for implementation, emphasizing cross-jurisdictional collaboration and direct engagement with the buy side.
The AppChain-based structure of DTCC’s new collateral platform allows for private, secure asset movement while maintaining compliance and institutional control. Built atop Ethereum-compatible infrastructure, LF Decentralized Trust’s Besu network ensures scalability and data integrity. The platform’s open architecture and common standards are designed to support seamless integration with legacy systems and decentralized networks.
This hybrid architecture reflects a growing trend between traditional and blockchain-native finance. Smart contract-based automation is increasingly being used to improve efficiency, transparency, and risk management in legacy financial systems. Pilot programs such as the Canton Network and CME Group’s use of Google Cloud’s Universal Ledger further validate blockchain’s potential as a foundational component of financial infrastructure.
Collateral mobility has emerged as a key driver of institutional tokenization adoption. Tokenized systems enable assets to be reused, rehypothecated, and transferred across jurisdictions and platforms without traditional frictions or T+ settlement delays. By enhancing liquidity and capital efficiency, such systems offer compelling use cases for both buy- and sell-side participants.
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