Digital Asset and DTCC Complete U.S. Treasury Bond Tokenization Pilot to Meet Speed, Privacy and Compliance Requirements

Blockchain solutions provider Digital Asset and the Depository Trust & Clearing Corporation (DTCC) recently completed a pilot project on the tokenization of U.S. Treasury collateral on the Canton Network. The project involved 26 market participants and completed 100 transactions, aiming to meet speed, privacy and legal compliance points while using highly accessible and popular U.S. Treasury bonds as collateral assets. The project used tokenized "digital twins" of U.S. Treasury bonds (UST) in four use cases, using Canton Network Global Synchronization and DTCC LedgerScan capabilities to demonstrate transaction processes and defaults. Digital twins can be used for the same purposes as the assets themselves, such as trading, loans or collateral. One of the use cases shows that tokenized UST assets will be collateralized according to margin calls (i.e., requests for investors' brokerage accounts to increase in value). The collateral is transferred in the form of atomic transactions visible in real time. (Cointelegraph)