- DTCC and Chainlink are building blockchain tools to modernize collateral and settlement systems.
- Kraken and Franklin Templeton are expanding tokenized investment products for institutional markets.
- Financial firms see tokenized assets as a faster and more efficient future for global finance.
Major financial institutions are using more tokenized assets in post-trade and investment systems as blockchain becomes more common in traditional finance. DTCC, Chainlink, Kraken, and Franklin Templeton are developing systems for collateral management, trading, and asset tokenization.
As per the announcement, the Depository Trust & Clearing Corporation will integrate Chainlink technology into its Collateral AppChain platform. The system focuses on improving collateral movement and risk management across global markets.
DTCC also plans to use Chainlink’s Runtime Environment to link asset prices, valuations, and settlement data. The platform aims to improve capital efficiency and reduce manual post-trade processes.
DTCC Builds Blockchain Collateral System
DTCC designed its Collateral AppChain to bring collateral management into a single system for banks, custodians, and market participants. The platform supports eligibility checks, margining, and automated settlement. Institutions can therefore process collateral across multiple asset classes in near real time.
DTCC Managing Director Nadine Chakar said, “By leveraging tokenization and distributed ledger technology… we aim to enable 24/7, near real-time collateral management.” She added that Chainlink integration brings unified on-chain pricing and valuation data into the system.
Chainlink Co-Founder Sergey Nazarov said, “Collateral management is the killer app that traditional finance has been waiting for.” He also pointed to secure coordination of data and workflows across regulated financial systems.
Kraken and Franklin Templeton Expand Tokenization
Payward, the parent company of Kraken, has partnered with Franklin Templeton to expand tokenized financial products. The firms plan to bring traditional investment products onto blockchain systems. The effort includes tokenized equities, yield products, and access to institutional liquidity.
Payward Co-CEO Arjun Sethi said, “The convergence between these two worlds is only going to deepen.” He added that new financial products now combine traditional asset backing with blockchain-based programmability.
Franklin Templeton will integrate its tokenized money market funds, known as BENJI, into Kraken’s ecosystem. Sandy Kaul said, “The focus should be on making on-chain assets more functional.”
XRP and Institutional Collateral Shift
Ripple Prime CEO Mike Higgins said digital assets such as XRP and Bitcoin could be used as collateral in institutional markets. This could reduce reliance on cash and U.S. Treasuries for settlement and margin requirements.
Higgins said cross-margining improves capital efficiency across trading systems. However, he noted that adoption remains at an early stage. Institutions are still building infrastructure for the wider use of crypto-based financial systems.
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