A new report from DTCC, Clearstream, Euroclear, and the Boston Consulting Group advocates for interoperable infrastructure across blockchain and traditional ledgers.<\/p>\n
A report published by The Depository Trust & Clearing Corporation (DTCC), Clearstream, Euroclear, and the Boston Consulting Group (BCG) presents a new framework for interoperability, with the aim of enabling “the safe and scalable adoption\u201d of digital assets. <\/p>\n
The joint report, published<\/a> on Wednesday, March 4, argues that interoperability is key for cryptocurrencies to \u201cachieve their full potential\u201d in traditional capital markets. It emphasizes the need for open, neutral, and reliable infrastructure to support the integration of what it refers to as \u201cdigital asset securities,\u201d or DAS, into mainstream finance.<\/p>\n In unpacking the current state of blockchain interoperability, the report highlights the problem of fragmentation across public and permissioned blockchains as Layer 1 and Layer 2 chains continue to proliferate<\/a>. <\/p>\n \u201cThis diversity is widening because spinning up new chains keeps getting easier: modular stacks and \u2018rollup-as-a-service\u2019 providers allow institutions to launch bespoke L2s with configurable data availability, privacy, and permissions in weeks rather than years,\u201d the report states. <\/p>\n The research also highlights regulatory fragmentation globally, arguing that this adds to the \u201cstructural inefficiencies\u201d of implementing blockchain in traditional capital markets. <\/p>\n \u201cThe operating model is evolving into a network-of-networks, with standards, gateways, and regulated service providers linking on-chain objects to off-chain finance,\u201d the report reads. <\/p>\n The proposed framework also argues that to integrate digital assets into TradFi systems, interoperability is needed not only between blockchain networks, but between L1s and L2s, traditional bank ledgers, and Central Securities Depository ledgers (CSDs ledgers). The report reads: <\/p>\n \u201cinteroperability can be defined as \u2018the ability to exchange assets across ledgers \u2013 DLT and traditional \u2013 while preserving the asset\u2019s integrity, ownership rights and lifecycle, with full legal and regulatory compliance\u201d<\/p><\/blockquote>\n In December, DTCC received clearance from the U.S. Securities and Exchange Commission (SEC) to pilot tokenized versions of securities<\/a> it already holds, and later that month, it announced the tokenization pilot would use institution-focused Layer 1 Canton. <\/p>\n DTCC, Clearstream, and Euroclear are key players in post-trade services, offering settlement and custody solutions for securities across global markets. <\/p>\n