- DTCC, Clearstream, and Euroclear have released a framework for digital assets.
- The framework aims to drive the acceptance of tokenized assets in the financial industry.
- “We have a unique opportunity to transform the financial system,” said Nadine Chakar, Managing Director at DTCC.
Discover the latest framework by DTCC, Clearstream, and Euroclear to revolutionize digital assets and drive tokenization in the financial industry.
Tokenization will be worth $16 trillion by 2030
The tokenization of global illiquid assets is projected to be a $16 trillion business opportunity by 2030. The FMIs believe that institutional adoption has reached an inflection point as firms continue to innovate in silos, often with small-scale initiatives that fail to prioritize broad ecosystem development. The whitepaper, “Building the Digital Asset Ecosystem,” outlines six principles intended to serve as a roadmap for the industry to develop comprehensive standards for the digital asset marketplace:
- Legal certainty – ensuring operations comply with the law
- Regulatory compliance – encouraging alignment with regulatory frameworks
- Resilience and security – developing robust infrastructure capable of resisting disruptions while protecting sensitive data
- Safeguarding customer assets – implementing governance via smart contracts to manage assets securely
- Connectivity and interoperability – facilitating transactions and flexible settlements across diverse networks
- Operational scalability – striving for efficiency and cost-effectiveness through standardization
In addition to these principles, the paper presents a list of controls to help firms mitigate risks such as asset mismanagement or insufficient controls to govern smart contracts. Recommended controls include defining who can access smart contracts and maintaining a comprehensive record of digital asset events and transactions.
“The industry needs to demonstrate tangible results and value generation”
Nadine Chakar, Managing Director and global Head of DTCC Digital Assets, emphasized the need for the industry to pivot and demonstrate tangible results and value generation. “While many firms recognize that blockchain holds enormous promise to deliver cost savings, capital efficiencies, and reduced risk, the industry needs to pivot and demonstrate tangible results and value generation. We have a unique opportunity to transform the financial system, but it will require collaboration across a wide cross-section of firms to build the infrastructure, standards, controls, and governance to underpin digital markets. We are proud to lead this conversation and will use this paper as a springboard to build consensus and drive efforts forward,” she said.
Jens Hachmeister, Managing Director, Head of Issuer Services & New Digital Markets at Clearstream, added, “New technologies bear immense potential to bring financial markets to the next level of efficiency, speed, and safety. To make this evolution a sustainable one, we need industry-wide collaboration and unified standards to overcome current challenges and drive the seamless integration of digital assets in the global financial ecosystem. As financial market infrastructures, we are developing the foundation for future digital markets for the benefit of our clients and all market participants.”
Philippe Laurensy, Managing Director and Head of Product, Strategy & Innovation at Euroclear, commented, “Through a true collaborative effort, we have developed a plan to demonstrate the potential of digital assets. Our objective is to create innovative solutions that will address the evolving needs of our customers and drive industry advancements, including clients having the flexibility to create space on their balance sheets through tokenization, therefore leading to new business opportunities. This collaboration is a testament to our commitment to innovation, and we look forward to the exciting opportunities that lie ahead and the positive impacts to be made for our clients and the global market.”
Conclusion
The collaborative effort by DTCC, Clearstream, and Euroclear to publish a framework for digital assets marks a significant step towards the widespread adoption of tokenized assets. By focusing on legal certainty, regulatory compliance, resilience and security, safeguarding customer assets, connectivity and interoperability, and operational scalability, the industry can build a robust digital asset ecosystem. As the tokenization market is projected to reach $16 trillion by 2030, the implementation of these principles and controls will be crucial in driving innovation and ensuring the sustainable growth of digital markets. The commitment to collaboration and unified standards will pave the way for a more efficient, secure, and integrated financial system.
