DTCC Endorses Ethereum Token Standard for U.S. Securities
The Depository Trust & Clearing Corporation (DTCC), the primary clearinghouse for securities transactions in the United States, has officially endorsed Ethereum’s ERC-3643 token standard for permissioned securities tokens, according to a March 20 announcement.
DTCC Joins ERC3643 Association
DTCC has joined the ERC3643 Association, a nonprofit organization dedicated to promoting the adoption of the ERC-3643 token standard. The association aims to advance the use of Ethereum-based permissioned tokens within regulated financial markets.
“DTCC will help lead the future of tokenization and support institutional adoption at scale,” said Dennis O’Connell, president of the ERC3643 Association.
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. 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 aligns with recent moves by U.S. regulators and policymakers to embrace blockchain technology and tokenization. President Donald Trump previously expressed intentions to position America as the “world’s crypto capital,” signaling increased regulatory openness toward blockchain-based financial innovations.
DTCC’s Blockchain Initiatives
The DTCC has been proactive in exploring blockchain technology, conducting several pilot projects, including:
- Testing settlement of tokenized U.S. Treasury Bills on the Canton Network.
- Piloting private asset tokenization on an Avalanche (AVAX) subnet.
- Launching ComposerX, a platform designed to streamline token creation and settlement for regulated financial institutions.
In 2023 alone, DTCC processed securities transactions totaling approximately $3 quadrillion, highlighting its central role in U.S. financial markets.
Quick Summary
- DTCC endorses Ethereum’s ERC-3643 token standard for permissioned securities.
- Joins ERC3643 Association to promote institutional adoption.
- ERC-3643 enables compliant token issuance and transfers on Ethereum.
- Reflects growing U.S. regulatory support for blockchain and tokenization.
- DTCC continues to lead blockchain innovation in financial markets.
