DTCC, the largest clearing and settlement service in the U.S., has agreed to buy Securrency, a leading digital asset infrastructure developer. The deal aims to integrate blockchain technology into DTCC’s existing products and services and unlock digital assets’ value for the global financial markets.
The financial world and blockchain industry witnessed a major shakeup recently with the announcement that the Depository Trust & Clearing Corporation (DTCC), the dominant clearing and settlement service in the U.S., has signed a definitive agreement to acquire Securrency, a renowned digital asset infrastructure developer.
This acquisition is not just another routine business deal. Instead, it reflects DTCC’s grand ambitions in the rapidly evolving digital asset space, aiming to fuse its mammoth settlement capabilities with cutting-edge blockchain technology.
DTCC’s Influence on Global Finance
For the uninitiated, DTCC’s impressive numbers speak for themselves. The institution settled a staggering $2.5 quadrillion worth of securities transactions in 2022 alone.
When you consider that its depository subsidiary oversees custody and asset servicing for securities from over 150 countries, amounting to an estimated $72 trillion, the scale of DTCC’s influence on global finance becomes evident.
Securrency’s Expertise in Digital Asset Solutions
On the other hand, while less vast than DTCC, Securrency boasts a stellar reputation for its advanced digital asset solutions.
Supported by giants like State Street, U.S. Bank, WisdomTree, and Abu Dhabi Catalyst Partners, and having forged partnerships with GK8, a renowned cybersecurity and digital asset custodian, the firm has established itself as a leader in the domain.
The Acquisition and Its Implications
The acquisition, expected to be finalized within a few weeks, seeks to smoothly embed digital assets into DTCC’s existing range of services.
While the terms of the deal remain confidential, there are already indicators of how this partnership might shape up.
Securrency will undergo a name change to DTCC Digital Assets, but it will retain its core leadership and approximately 100 of its employees.
Such a move ensures continuity, preserving the essence of Securrency’s innovation while integrating it into DTCC’s vast framework.
DTCC’s president, CEO, and director Frank La Salla expressed his enthusiasm for this strategic alliance.
“By bringing together DTCC’s extensive network of financial market participants with the sophistication of the Securrency technology, we will be in a leading position to unlock the value of digital assets.”
Frank La Salla
Such a statement signals not just the immediate benefits of the acquisition but paints a picture of a future where digital assets might become mainstream, driven by the synergy between these two giants.
Additionally, DTCC intends to license Securrency’s technology and expand into professional services. Emphasizing Securrency’s prowess, DTCC will also champion its interoperability among distributed ledger solutions.
Notably, WisdomTree, one of Securrency’s backers, already employs its software in the WisdomTree Prime digital asset platform, highlighting the tech’s market-ready applicability.
DTCC’s Interest in Blockchain Technology
While this acquisition might come as a surprise to some, DTCC’s interest in blockchain technology has been evident for a while.
As early as 2020, the institution began exploring the possibilities within the blockchain space. Last December, in collaboration with the Digital Dollar Project, DTCC executed a securities settlement pilot project.
This experiment used a simulated digital dollar to facilitate transactions with tokenized securities across T2, T1, and T0 settlements.
Such ventures showcase DTCC’s commitment to innovation and transformation in the financial markets.
By acquiring Securrency, DTCC hopes to accelerate its development of an enterprise digital asset platform that can unlock the power of institutional DeFi.
This could have profound implications for the future of finance as digital assets become more accessible, transparent, efficient, and secure.
