The decision of DTCC to move its CDS post trade processing capabilities onto a blockchain based solution will be the most important production implementation of distributed ledger technology to date.
The Depository Trust and Clearing Corporation (DTCC) last month – launched its plans to develop a blockchain-based post-trade framework for derivatives processing with tech firms R3, IBM and Axoni starting in January. The US-based clearing institute aims to replace the technology underpinning its Trade Information Warehouse database with a distributed ledger. Under the DTCC agreement, IBM is the primary contract holder for the DTCC implementation and will lead the initiative, provide program management, contribute DLT expertise and integration services as well serving as the solution-as-a-service (SaaS) provider. Axoni is to provide distributed ledger infrastructure and smart contract applications, while the blockchain bank-backed consortium R3CEV is acting as a “solution advisor” from both a technological perspective and from a banking workflow perspective.