The Depository Trust & Clearing Corporation (DTCC) will use Chainlink infrastructure for its blockchain-based security management platform, expanding previous work between the firms for one of Wall Street’s core risk management functions.
The firm said its Collateral AppChain will use Chainlink’s Runtime Environment (CRE) and data standard to support pricing, valuation, margining, collateral optimization and settlement. AppChain is a Besu-based blockchain platform that facilitates tokenization of assets and real-time, 24/7 collateralization.
DTCC’s platform is aimed at reducing delays and fragmentation in today’s collateral systems, where assets are often trapped across institutions and time zones. By tokenizing collateral and automating workflows through smart contracts, the system is designed to enable near-real-time security movements across both traditional financial markets and blockchain networks.
“By leveraging tokenization and distributed ledger technology (DLT) to modernize collateral mobility, our goal is to enable 24/7, near real-time collateral across global markets and blockchains,” said Nadine Chakar, DTCC CEO and Global Head of Digital Assets.
Chainlink will provide the data and orchestration layer. Its technology will help link asset prices, valuations and collateral, while supporting eligibility checks, margining and settlement instructions. Chainlink is a decentralized oracle network that supplies blockchains with real-world data such as prices, weather, and APIs, since blockchains cannot access external information on their own.
The platform runs within DTCC’s AppChain setup. DTCC unveiled the tokenized security platform last year and said security mobility could become a key institutional use case for blockchain technology.
The Chainlink tie-up builds on Smart NAV, a 2024 pilot where DTCC and Chainlink tested bringing mutual fund securities data to blockchains.
JPMorgan, Franklin Templeton and BNY Mellon participated in the pilot, which focused on cross-chain fund tokenization.
DTCC has also expanded tokenization work beyond collateral. The company said earlier this month that more than 50 firms had joined a working group for The Depository Trust Company’s tokenization service, with limited production deals planned for July and a launch planned for October.
DTCC’s subsidiaries processed $4.7 quadrillion in securities transactions by 2025. Its depository subsidiary provided custody and asset servicing for securities issues valued at $114 trillion.
