DTCC aiming to make all 1.4 million securities in its custody digitally eligible

Core Insights - The Depository Trust & Clearing Corporation (DTCC) is preparing to support digital representations of all 1.4 million securities in its custody system, indicating a significant commitment to tokenization in U.S. capital markets [1][3] - DTCC's tokenization platform, developed after its acquisition of Securrency, aims to enable investors to access the entire market of DTC-eligible securities, which includes equities, mutual funds, and fixed income products [2][3] - The initiative will allow for the on-chain movement of tokenized assets, with a focus on collateral optimization as the first use case, enabling atomic settlement and 24/7 collateral movement [4][5] Tokenization and Infrastructure - The rollout of tokenized assets will be opt-in, allowing participants to convert securities into tokenized formats and back within approximately 15 minutes [4] - Tokenized assets will maintain existing ownership rights, legal protections, and bankruptcy treatment, while clients will have the flexibility to choose their preferred wallet or blockchain [5] - DTCC is committed to building interoperability based on standards rather than just connections, emphasizing the importance of security and the avoidance of blockchain bridges [6][7] Focus on Collateral - The initial focus on collateral optimization aims to help firms access new financing strategies and improve capital movement efficiency across regions and time zones [5] - Tokenized cash, including stablecoins or deposits, will also be supported as part of this collateral optimization strategy [6]