CEO of DTCC emphasized the potential impact of this acquisition on the issuance of financial instruments, particularly exchange-traded funds (ETFs), on blockchain platforms.
The Depository Trust & Clearing Corp. (DTCC) has purchased blockchain startup Securrency Inc., located in Maryland, in an estimated $50 million deal, marking a significant strategic step. With this deal, DTCC makes its first purchase in ten years and makes a significant foray into financial services powered by blockchain technology.
Frank La Salla, CEO of DTCC, emphasized the potential impact of this acquisition on the issuance of financial instruments, particularly exchange-traded funds (ETFs), on blockchain platforms. This move underscores DTCC’s commitment to harnessing the power of blockchain technology to transform traditional financial processes.
Experts in the field suggest that blockchain has the potential to revolutionize financial markets by streamlining various operations. Citigroup analysts projected in March that up to $5 trillion in traditional financial assets could transition into digital tokens on blockchain networks by the end of the decade.
Upon completion of the acquisition, Securrency’s existing workforce of approximately 100 employees will be seamlessly integrated into DTCC. Following the acquisition of blockchain startup Securrency will be rebranded as DTCC Digital Assets. Nadine Chakar, the current CEO of Securrency, will continue to lead the newly formed unit and will also join the management committee at DTCC.
This acquisition holds the promise of advancing standardization in an industry where diverse and incompatible blockchain systems have raised concerns. By aligning forces, DTCC and Securrency aim to contribute to a more unified and efficient blockchain ecosystem.
The move underscores a broader trend of established financial institutions recognizing the transformative potential of blockchain technology. As blockchain continues to evolve, collaborations like this are expected to pave the way for innovative solutions and improved operational efficiency across the financial services landscape.
Overall, the DTCC’s investment in Securrency represents a significant milestone in the convergence of traditional finance and cutting-edge blockchain technology. It sets the stage for a new era of streamlined, secure, and transparent financial operations, with potential benefits for market participants and investors alike.