From tokenized shares to usable collateral inside DTCC’s new service

DTCC’s tokenisation service lets eligible institutions turn securities already held at DTC into tokens that can move between registered wallets. The larger financing opportunity begins after that transfer. A lender or margin recipient still has to accept the security, value it and establish the terms under which it can use or return it, making collateral mobility a question of market agreements as well as blockchain speed. A share can be available for transfer and still be unusable for a particular margin call. The recipient may not accept that security, the account may be ineligible or the value after a haircut may be too low. Tokenising it changes the form in which it can move without answering all of those questions.

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