DTCC and FMI Partners to Overhaul Regulatory Stacks as part of $16 Trillion Digital Assets Vision Plan

DTCC and Financial Market Infrastructure (FMI) partners have joined forces to design a “blueprint” for a global digital asset ecosystem. In pushing for a transition to their desired future, partners cite a $16 trillion opportunity contingent on removing adversaries.

DTCC and partners envision a $16 trillion opportunity across the global digital asset ecosystem

DTCC, Euroclear and Clearstream have joined forces with Boston Consulting Group to create a modern digital asset ecosystem. Companies predict a $16 trillion opportunity in the global digital asset space.

In the work plan entitled Let’s advance the era of digital assets together, companies present a plan to remove obstacles. According to the report, which cites “small, isolated pools of instrument liquidity based on proprietary DLT (Distributed Ledger Technologies)”, the cited critics on the path to the industry’s development include “years of smaller-scale implementations”.

To do this, DTCC and the team will review nearly 100 regulations and white papers from various ecosystems in the industry. They also plan to conduct over 20 interviews with various market participants and technology providers.

Innovation and implementation remain fragmented despite clear opportunities, DTCC

There are only a few DLT protocols

recording significant consolidated trading volumes. According to the report, this poses a hindrance to the future of digital assets due to a fragmented liquidity system and stagnant tokenization.

The consequence is that digital assets are costly to maintain compared to their traditional alternatives in the short term. The plan therefore highlights already existing medium and long-term opportunities. These include legal clarity, regulatory compliance, resilience and security, protection of customer assets, connectivity and interoperability, and operational scalability.

Quoting Managing Director and Global Head of DTCC Digital Assets, Nadine Chakar, “While many companies see potential in blockchain technology, including lower risk and lower costs, the financial services industry still needs to transition to distributed ledger technology.”

That’s why Chakar calls for “a broad cross-section of companies to work together to build the infrastructure, standards, controls and governance that will underpin digital markets.” Clearstream’s managing director, director of issuer services and new digital markets, Jens Hachmeister, supported the call.

DTCC Digital Assets mobilizes the power of blockchain technology to build a global, seamless and connected ecosystem for digital assets. Its key capabilities leverage blockchain technology to tokenize any asset, automate compliance, support market demands, and enable digital asset markets.

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