Key insights
- The DTCC's partnership with Stellar for asset tokenization, involving up to $114 trillion, signals significant institutional adoption of blockchain technology. This move by a major US market infrastructure provider could boost confidence in digital assets and potentially influence traditional finance's integration with crypto rails. While primarily a crypto-focused event, it highlights a growing trend of established financial entities exploring distributed ledger technology, which could have broader implications for market efficiency and innovation.
Scott Melker discusses the Depository Trust & Clearing Corporation's (DTCC) choosing blockchain operator Stellar (XLM-USD) to help with its tokenization of up to $114 trillion in assets.
"The Daily Wolf with Scott Melker" airs every day at 12:00 p.m. Tune in for your daily dose of all things crypto.Make sure to also check out Yahoo Finance's new crypto hub to find the latest crypto-related news.
We have continued stories as I've showed you of adoption by massive entities across the world of crypto rails and crypto tokens and crypto assets.
This is one of the biggest ones we've ever seen. DTCC plans to bring tokenized assets to Stellar in latest Wall Street blockchain push. The US market structure, infrastructure, giant targets connecting tokenized stocks, ETFs and Treasuries to Stellar in the first half of 2027.
So this is part of the DTCC's standards driven multi-chain strategy that they laid out at the end of last year when they got a no-action letter from the SEC.
You may remember that they first made an announcement with Canton Network. Price did go up, not immediately, but over time after that with Canton Network.
And now you have them making an announcement with Stellar. I had to look at this twice. It felt like an announcement from seven or eight years ago when we used to get announcements about Stellar, but certainly not with the DTCC.
This is one of those chains that's been around for a very, very long time. We haven't seen many announcements around in quite a while.
And I think what's actually notable is that over 24 hours, the price of Stellar, last I checked, I haven't looked, was up over 35%.
We have not generally seen tokens moving on news in quite a long time. So that could be an interesting signal that finally some of the coin market is ready to move when it gets a favorable headline as big as this.
I mean the DTCC custodies 114 trillion dollars in assets. They do about 4.5 quadrillion in volume a year.
Of course, as I said, they are looking at going multi chain and they're not going to be, you know, strictly building on Stellar, but having them in the mix, obviously bullish for that token.
There's more than 50 financial firms that are participating in the DTCC's efforts here, including of course BlackRock, Circle, Goldman Sachs and every major bank.
So, seems that we're still having two competing paths here for tokenization and adoption by the largest institutions.
Remember, I mean, DTCC clears most securities trades, right?
Path one is the one that we just saw pass, uh, paused, excuse me, the SEC's innovation exemption that we talked about, that would basically allow for third parties to tokenize and bring those tokens intofy and participate participate in a decentralized manner.
The path two that we see very rapidly advancing is this sort of DTCC's regulated issuer aligned tokenization.
multichain, it's been blessed by the SEC and has a huge asset base, but it basically just means that crypto is being adopted as the plumbing.
It doesn't necessarily mean that a lot of that is going to accrue to crypto assets or crypto natives.
This is very, very highly centralized and using the technology for its best purpose, but that doesn't mean that it's going to be decentralized or in the true spirit of crypto.