The Depository Trust & Clearing Corporation (DTCC) and Chainlink are partnering to make it possible to transfer tokenized versions of traditional financial assets for a Swift blockchain interoperability project.
The Executive Director of Innovation Strategy and Digital Assets at DTCC, Stephen Prosperi, has written a blog on Chainlink that says, “Our exploration in this space started with our collaborative work with Chainlink as part of Swift’s interoperability project.”
For facilitating cross-chain messaging and token transfers, Swift uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) on the backend, while DTDC works as the issuer of tokens and central securities depository (CSD). To be more precise, DTCC creates and distributes “BondTokens” that are compatible with Chainlink CCIP and sends them to test wallets chosen by Swift.
The DTCC’s participation in Swift’s blockchain interoperability project demonstrates its dedication to maintaining a leadership position in FMI innovation and developing fresh opportunities for its clients to improve their financial operations and get new value through digital technologies.
The blog says, “Together with the largest players in the financial industry, DTCC sees an opportunity to enhance the way financial data flows across the industry and how assets are settled across capital markets, bringing the benefits of blockchain technology to life.”
The partnership between DTCC and Chainlink, leaders in infrastructure at the intersection of capital markets and blockchain technology, opens the door to a wide range of use cases that could fundamentally alter how the financial sector functions.