DTCC builds out blockchain-based collateral system with Chainlink integration The platform tokenizes collateral on blockchain rails and uses smart contracts to enable 24/7 automated collateral management across financial markets.
What to know: – DTCC will use Chainlink for its blockchain-based Collateral AppChain to automate risk-management functions like pricing, valuation, and settlement. – The platform tokenizes collateral on blockchain rails and uses smart contracts to enable 24/7 automated collateral management across financial markets. – This collaboration follows the Smart NAV pilot with JPMorgan and BNY Mellon
DTCC plans a separate new tokenization service launch in October. The Depository Trust & Clearing Corporation (DTCC) will use Chainlink infrastructure for its blockchain-based collateral management platform, extending earlier work between the firms into one of Wall Street’s core risk-management functions. The firm said its Collateral AppChain will use Chainlink’s Runtime Environment (CRE) and data standard to support pricing, valuation, margining, collateral optimization and settlement.
The AppChain is a Besu-based blockchain platform facilitating tokenization of assets and real-time, 24/7 collateral management. DTCC’s platform is aimed at reducing the delays and fragmentation in today’s collateral systems, where assets are often trapped across institutions and time zones. By tokenizing collateral and automating workflows through smart contracts, the system is designed to enable near real-time collateral movement across both traditional financial markets and blockchain networks. “By leveraging tokenization and distributed ledger technology (DLT) to modernize collateral mobility, our goal is to enable 24/7, near real-time collateral management across global markets and blockchains,” said Nadine Chakar, DTCC managing director and global head of digital assets.