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DTCC Partners with Stellar to Pioneer Tokenized Securities on Public Blockchain

The Depository Trust & Clearing Corporation (DTCC) has announced a groundbreaking integration of its tokenized securities platform with the Stellar network, set to go live by mid-2027.

This initiative marks a historic moment as it will be the first instance of DTC-custodied securities operating on a public blockchain.

Under an SEC no-action letter, this integration will encompass major assets such as Russell 1000 stocks, ETFs, and U.S. Treasuries.

The partnership allows for the efficient conversion of traditional assets into their tokenized counterparts and supports comprehensive lifecycle management.

DTCC will maintain the definitive legal record of the assets while Stellar will provide an on-chain representation that mirrors this record.

This development is expected to dramatically streamline post-trade settlements, potentially reducing settlement times from T+1 to near-instantaneous.

DTCC’s approach also reflects a broader strategy, as they plan to connect with multiple blockchain networks, with Stellar being the first of many.

Nadine Chakar, DTCC’s global head of digital assets, emphasized that Stellar's design is particularly compliant, making it an ideal choice for this initiative.

As DTCC's collaboration progresses, it could prompt other central clearinghouses and securities depositories worldwide to adopt similar frameworks.

The successful implementation of this model may revolutionize the way traditional financial assets are managed and traded in the digital era.