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DTCC's Acquisition of Blockchain Startup Securrency Enhances Tokenization of RWAs

Oct 25, 2023 at 08:48 am

DTCC, the prominent U.S.-based clearinghouse responsible for processing an impressive $2,500 trillion in securities transactions last year, has taken a strategic step into the realm of digital assets. They have entered into an agreement to acquire Securrency, an institutional blockchain infrastructure provider, as part of their expansion into the world of digital assets. This acquisition will result in Securrency becoming a wholly-owned subsidiary of DTCC, operating under the name DTCC Digital Assets.

The significance of this purchase lies in the growing convergence of traditional financial systems (TradFi) with blockchain technology. Financial institutions, including banks and asset managers, are increasingly focused on the tokenization of real-world assets (RWA), marking a pivotal development in the world of finance.

Securrency offers a valuable service to institutions by providing blockchain-based regulatory technology that complements existing legacy systems. This technology enables the adoption of digital assets while ensuring full compliance with regulatory requirements.

Tokenization involves representing traditional assets such as private equity, credit, and real estate on blockchain networks. This transition results in more efficient operations and cost-effective transactions. A report by digital asset manager 21.co predicts that the tokenized assets market could experience substantial growth, potentially reaching a valuation between $3.5 trillion and $10 trillion by the year 2030.

Securrency's CEO, Nadine Chakar, expressed enthusiasm about the acquisition. Chakar, formerly the head of digital at asset management giant State Street before joining Securrency, stated:

 "We are excited to bring together DTCC’s infrastructure capabilities with Securrency’s technology to embrace a future where the digitization of capital markets is at the forefront of innovation."

Chakar emphasized that these combined capabilities would enable DTCC to collaborate with the industry to build a resilient and scalable infrastructure that is crucial for the widespread adoption of digital assets.

In addition to the potential unlocked in terms of compliance, liquidity, efficiency, and interoperability, this acquisition signifies a significant step toward enhancing the accessibility and integration of real-world asset trading on blockchain networks.

While the press release did not disclose the purchase price, Bloomberg reported that it was approximately $50 million.

Read more: From Crypto to Conventional Finance: Wintermute Sheds Light on the Talent Migration

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