DTCC Joins ERC3643 Association to Promote Ethereum Token Standard
The Depository Trust & Clearing Corporation (DTCC), the primary clearinghouse for securities transactions in the United States, has announced its commitment to promoting Ethereum’s ERC-3643 token standard for permissioned securities tokens.
DTCC Supports ERC-3643 Adoption
In a March 20 announcement, DTCC revealed it has joined the ERC3643 Association, a nonprofit organization dedicated to advancing the adoption of the ERC-3643 standard. This move aligns with recent efforts by U.S. regulators and institutions to embrace blockchain technology and tokenization.
Dennis O’Connell, president of the ERC3643 Association, stated:
“DTCC will help lead the future of tokenization and support institutional adoption at scale.”
ERC-3643: Permissioned Tokens on Ethereum
ERC-3643, also known as the T-REX Protocol, is an open-source suite of smart contracts designed to facilitate the issuance, management, and transfer of permissioned tokens, even on permissionless blockchains like Ethereum. The standard utilizes a decentralized identity protocol to ensure compliance by restricting token ownership to users who meet predefined criteria.
U.S. Regulators Embrace Tokenization
This endorsement by DTCC highlights growing regulatory support for blockchain-based tokenization in the U.S., following President Donald Trump’s pledge to position America as the “world’s crypto capital.”
DTCC, closely overseen by the U.S. Securities and Exchange Commission (SEC), plays a critical role in the U.S. financial system, having processed transactions totaling $3 quadrillion in 2023 alone.
DTCC’s Blockchain Initiatives
DTCC has been proactive in exploring blockchain technology, including:
- Piloting tokenized U.S. Treasury Bills settlement on the Canton Network.
- Testing private asset tokenization on an Avalanche (AVAX) subnet.
- Launching ComposerX, a platform for streamlined token creation and settlement for regulated financial institutions.
Summary and Key Points
- DTCC joins ERC3643 Association to promote Ethereum’s ERC-3643 token standard.
- ERC-3643 enables permissioned token issuance and management on Ethereum.
- DTCC’s involvement signals strong institutional and regulatory support for blockchain tokenization in the U.S.
- DTCC continues to lead blockchain innovation with multiple pilot projects and platforms.
