Note from the Publisher: Folks, this is a freaking HUGE deal in the history of blockchain and financial technology. The Depository Trust & Clearing Corp (DTCC) has begun migrating $11 TRILLION in credit derivatives to a custom distributed ledger (a/k/a “blockchain). Now, they clear $1.5 quadrillion in transactions annually, so this number represents under 1% of all the transactions they process, but even so, it’s a noteworthy event in the history of blockchain technology. The migration will occur over the coming year. The move is particularly interesting since Overstock’s t0 has been nipping at their heels the past few years, to offer an alternative blockchain settlement to DTCC. The race is on.
“The Depository Trust & Clearing Corporation (DTCC) has selected a series of firms to help integrate distributed ledger technology into its first large-scale, real-world application.
In the single, complex deal involving a distributed ledger consortium, a stock exchange, a tech startup, a legacy computer firm and an international collection of bulge bracket banks, the post-trade financial services company has begun the process of moving a significant part of its $1.5qn-worth of transaction workflow to a distributed ledger network.
With a contract announced today, IBM will help manage the process of moving $11tn worth of credit derivatives to a custom distributed ledger built by VC-backed startup, Axoni, under the advisement of banking consortium R3CEV.
The CEO of the DTCC’s derivatives service subsidiary, Chris Childs, explained to CoinDesk how a network of nodes run by the counterparties of a transaction will be linked together to not only streamline post-trade processes, but save money as well….”