DTCC Partners With Major Banks to Move Securities Infrastructure Toward Blockchain

WHY IT MATTERS

Think of the DTCC as the post office of Wall Street — when you buy or sell a stock, the DTCC is the organization that makes sure the stock actually gets delivered to the buyer and the money gets delivered to the seller. It handles an enormous volume of transactions every day. Blockchain technology is essentially a shared digital record book that multiple parties can verify without needing a single middleman. If the DTCC begins using blockchain for some of its operations, it could change how the basic mechanics of buying and selling stocks and bonds work in the United States. For people new to crypto, this is an example of how blockchain technology — the same kind of system that powers cryptocurrencies — is being explored for uses far beyond digital currencies themselves.