Depository Trust & Clearing Corporation (DTCC) has just released an in-depth 43-page report on blockchain, emphasizing that fragmentation risks among distributed ledger technology (DLT) networks could hinder the scaling and adoption of digital assets within the decentralized finance (DeFi) ecosystem.
The report is co-authored by DTCC, Clearstream, and Euroclear, with consulting from Boston Consulting Group. It calls for increased data standardization, process harmonization, and clear role delineation among participants to avoid fragmentation in the still-nascent DLT space.
According to the authors, interoperability is a key factor in unlocking the full potential of digital securities, helping to simplify use cases, unlock new business models, and maintain liquidity, security, and transferability of assets.
The report is designed as a “neutral reference document” amid the growing application of blockchain in traditional financial systems. Tokenization—the process of bringing real-world assets onto the blockchain—along with stablecoins, is attracting significant attention. Last year, DTCC’s subsidiary, The Depository Trust Company, received a “no-action” letter from the U.S. Securities and Exchange Commission, allowing it to provide tokenization services for custodial assets.
However, DTCC warns that fragmentation among emerging DLT networks is becoming one of the biggest barriers to scaling. Without interoperability, assets risk becoming “stuck” within isolated ecosystems, operational costs remain high, and operational and regulatory compliance risks continue to grow.
To address this challenge, the report references long-standing standardization efforts in traditional finance (TradFi), including SWIFT’s messaging system and the International Securities Identification Number (ISIN). The authors identify five foundational areas that need standardization: assets and liabilities, ownership rights, asset lifecycle and transfer processes, ledgers, and legal and compliance frameworks.
According to Nadine Chakar, DTCC’s Managing Director of Digital Asset Strategy, interoperability is fundamental to scaling and adopting digital assets broadly. She emphasizes that participants should focus on data standards, common protocols, and robust risk governance to build bridges between TradFi and DeFi based on transparency, security, and trust.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
CoreWeave CEO shares GPU leverage strategy and the ideal future under AI capital effects
CoreWeave CEO Michael Intrator shares his journey from running a computational hedge fund to becoming a professional infrastructure provider. He emphasizes innovative GPU leverage financing models to address hardware costs and discusses challenges such as GPU shortages and power supply issues. He predicts that artificial intelligence will lower the operational capital threshold for businesses, opening up new possibilities.
ChainNewsAbmedia2h ago
Why do large banks refuse to use public ledgers and instead build their own blockchains?
Large banks have a low acceptance of public ledgers because their transparency conflicts with trust responsibilities, which could trigger market volatility. DRW founder Don Wilson pointed out that private blockchains better align with financial regulations and privacy needs. Even though public blockchains offer significant transformation opportunities, future financial infrastructure will still prioritize systems that protect privacy.
ChainNewsAbmedia5h ago
Ripple to Strengthen XRP Ledger Security With AI - U.Today
Ripple plans to enhance the security of its XRP Ledger using AI, integrating AI tools for early vulnerability detection, implementing AI-assisted testing, and forming a dedicated red team to simulate attacks. This proactive approach aims to fortify the ledger amid its growth and increasing attractiveness to attackers.
UToday8h ago
European Blockchain Convention Returns as Institutions Drive Crypto
Barcelona, Spain — The question facing the digital asset industry is no longer one of legitimacy. After the approval of spot Bitcoin and Ethereum ETFs, the rollout of MiCA across the European Union, and growing allocations from asset managers and pension funds, institutions are in the market. The qu
CryptoBreaking8h ago
The Definitive Stablecoin Landscape Series: North America
Stablecoins are undergoing an evolution into a foundational financial infrastructure. North America leads in development, focusing on regulated, compliant options. The market shows a shift with RLUSD gaining traction due to integration with Ripple, emphasizing real demand over exchange liquidity.
CoinDesk8h ago
Justin Sun Unveils AI Detective Tracking $1B in Crypto Crimes
Justin Sun has launched an AI detective system capable of analyzing over $1 billion in crypto crimes, aiding law enforcement by identifying suspects quickly. A $100 million bounty rewards contributors with valuable leads in ongoing investigations.
LiveBTCNews8h ago
