In an effort to bolster Ethereum’s ERC-3643 standard for permissioned securities tokens, the Depository Trust and Clearing Corporation, the primary U.S. clearinghouse for securities transactions, has become a member of the ERC-3643 Association.
The announcement, released on March 20, demonstrates DTCC’s increasing involvement with blockchain-driven financial solutions. Known as the T-REX protocol, ERC-3643 is an open-source smart contract standard intended for the issuance and management of permissioned tokens.
This standard utilizes a decentralized identity framework, ensuring that only authorized individuals can possess these assets—even on public blockchains. So far, over 40 tokens have been created and managed using this standard, which has helped tokenize assets valued at $28 billion across more than 180 jurisdictions.
ERC-3643 will be incorporated into DTCC’s ComposerX™ platform, which features ComposerX Factory, a tool designed for managing financial data through tokenization. This integration seeks to enhance risk management, security, and compliance within digital asset markets, while also minimizing operational costs and complexities.
Furthermore, by connecting real-world assets to a broader range of market participants, the automated processes of ERC-3643 are anticipated to boost liquidity, accelerate settlement times, and enhance transparency.
“DTCC’s dedication to the open-source ERC3643 token standard aligns perfectly with our vision of creating a more efficient and secure financial market.”
— Nadine Chakar, Global Head of DTCC Digital Assets
In 2023, DTCC managed a staggering $3 quadrillion in securities transactions and held $85 trillion in assets across over 150 nations. The organization has been exploring various blockchain applications, such as the tokenization of private assets on an Avalanche (AVAX) subnet and the settlement of tokenized U.S. Treasury Bills on the Canton Network.
The backing from DTCC suggests that U.S. regulators are becoming more open to blockchain-based financial solutions. In a related maneuver, the Commodity Futures Trading Commission has also begun examining blockchain applications.
On February 7, it announced plans to host a CEO Forum with notable industry leaders like Circle (USDC), Coinbase, Crypto.com, MoonPay, and Ripple (XRP) to discuss the launch of its pilot program for digital asset markets. The initiative aims to test stablecoins and other forms of tokenized non-cash collateral.