Participants declared a tokenisation pilot project in the US successful after executing 100 transactions related to the management of collateral.
The announcement came from Digital Asset, a blockchain provider, and The Depository Trust & Clearing Corporation (DTCC), a provider of market infrastructure, who said the pilot demonstrated that tokenised assets could be used to optimise collateral.
Called the US Treasury Collateral Network Pilot, the initiative focused on leveraging distributed ledger technology applications to support market connectivity across the lifecycle of collateral management – including for the first time in a collateral default scenario.
Jenny Cieplak, a partner at global law firm Latham & Watkins, said: “This is crucial because collateral isn’t just about mitigating risk—it ensures that in the event of a default, secured parties can take legal possession of the collateral. This demonstrates blockchain’s potential to support the full lifecycle of financial transactions, beyond just execution.”
In the pilot, Digital Asset, four investors, four banks, two central counterparties, three custodians/collateral agents, and a central securities depository operated fourteen Canton nodes, connecting four types of cross-application transactions through ten distributed applications, using DTCC’s LedgerScan to support tracking and governance of the assets involved in the pilot transactions.
Canton nodes are supported by Canton Network, which is described as the financial industry’s “first and only public chain that can achieve on-chain privacy, control, and interoperability, making it the most suitable network for institutional assets”.
“The successful completion of this pilot proves that tokenised assets could be leveraged to optimise collateral,” said Kelly Mathieson, chief business development officer at Digital Asset. “In addition to the liquidity and operational efficiencies gained, the pilot demonstrates how tokenised collateral can improve market transparency, legal certainty of ownership in seizure/close out scenarios, and significant real-world benefits, including faster collateralisation and enhanced regulatory oversight.”
Nadine Chakar, global head of DTCC Digital Assets, said: “This pilot successfully demonstrated the power of tokenisation – and its potential to enhance collateral mobility and unlock liquidity.”
