The Depository Trust and Clearing Corporation (DTCC), Wall Street’s post-trade financial services company, announced it will turn to distributed ledger technology for its processing activities.
The DTCC will partner with two blockchain startups, Axoni and R3, to develop the technology, and IBM will handle the transfer of derivatives to the platform. The system is projected to be developed this year and launched in early 2018.
This will mark the first truly large-scale project using blockchain technology to transform financial services.
DTCC CEO Michael Bodson said in an interview with Forbes,
“There’s been a lot of hype in the last year and a half about blockchain and distributed ledger technology and how it will revolutionize the financial markets and change the post-trade processing and whatnot, but there’s been no major practical rollout of scale based upon this technology. This will be one of the first globally where we are using distributed ledger technology to become a piece of the infrastructure in a very critical market, in the credit default swaps market, and use it across the entirety of multiple players.”