DTCC (Depository Trust & Clearing Corporation) and Financial Market Infrastructure (FMI) partners, including Clearstream and Euroclear, have joined forces with the Boston Consulting Group to design a "blueprint" for the global digital asset ecosystem. The partners envision a $16 trillion opportunity within the global digital asset space, contingent on removing obstacles to industry growth.

Advancing the Digital Asset Era, Together

In their work plan, DTCC and the team introduce a blueprint to remove obstacles such as "years of smaller-scale deployments" and "sub-scale, isolated pools of instrument liquidity on propriety DLTs (Distributed Ledger Technologies)." To achieve this, they will review almost 100 regulations and whitepapers from diverse ecosystems within the industry and conduct more than 20 interviews with different market participants and technology vendors.

Fragmented Innovation and Adoption Despite Clear Opportunity

The report highlights that only a handful of DLT protocols are recording significant consolidated trading volumes, which is an obstacle to digital assets' future due to a fragmented liquidity system and stagnating tokenization. This results in costly maintenance of digital assets relative to their traditional alternatives in the short term.

Medium and Long-Term Opportunities

The blueprint highlights medium and long-term opportunities that are already in place, including legal clarity, regulatory compliance, resilience and security, customer asset protection, connectivity and interoperability, and operational scalability.

Call for Collaboration and Leveraging Blockchain Technology

Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, calls for "Collaboration across a wide cross-section of firms to build the infrastructure, standards, controls, and governance to underpin digital markets." Clearstream Managing Director, Head of Issuer Services and New Digital Markets, Jens Hachmeister, supports this call.

DTCC Digital Assets' Key Capabilities

DTCC Digital Assets mobilizes the power of blockchain technology to build a global, liquid, and interconnected ecosystem for digital assets. Its key capabilities leverage blockchain to tokenize any asset, automate compliance, support market requirements, and launch digital assets marketplaces.

The partnership between DTCC, Clearstream, Euroclear, and the Boston Consulting Group highlights the growing interest and potential of the digital asset ecosystem. By addressing the obstacles and leveraging the opportunities, the partners aim to create a more efficient and interconnected global digital asset market.