DTCC Endorses Ethereum's ERC-3643 Standard for Permissioned Securities Tokens

According to Cointelegraph, the Depository Trust & Clearing Corporation (DTCC), the United States' leading clearinghouse for securities transactions, has announced its commitment to promoting Ethereum's ERC-3643 standard for permissioned securities tokens. This move was revealed in a statement on March 20, highlighting the DTCC's membership in the ERC3643 Association, a nonprofit organization focused on advancing the adoption of this token standard. The endorsement by DTCC signifies a growing acceptance of tokenization by U.S. regulators, aligning with U.S. President Donald Trump's vision to establish America as the "world's crypto capital." This development suggests that the Ethereum blockchain network could play a pivotal role in the U.S. ecosystem for permissioned security tokens. Dennis O’Connell, president of the ERC3643 Association, emphasized DTCC's leadership in the future of tokenization and its support for institutional adoption at scale. ERC-3643, also known as the T-REX Protocol, is an open-source suite of smart contracts designed to facilitate the issuance, management, and transfer of permissioned tokens, even on permissionless blockchains. It utilizes a decentralized identity protocol to ensure that only users meeting specific conditions can hold these tokens. The DTCC, a private entity under the oversight of the U.S. Securities and Exchange Commission (SEC), has been proactive in embracing blockchain technology. In 2023, it processed transactions totaling $3 quadrillion, as reported in its annual report. The organization has piloted several initiatives related to onchain securities transactions, including testing the settlement of tokenized U.S. Treasury Bills on the Canton Network and exploring private asset tokenization on an Avalanche (AVAX) subnet. In February, DTCC launched ComposerX, a platform aimed at streamlining token creation and settlement for regulated U.S. financial institutions. Additionally, in November, the Commodity Future Trading Commission (CFTC), a major U.S. financial regulator, announced plans to investigate similar technologies for onchain settlement in the derivatives markets.