Yesterday, Jennifer Peve, the DTCC‘s Global Head of Strategy & Innovation, said that she doesn’t believe blockchain is a solution to help with the U.S. transition to one day (T1) settlement that will happen in May of this year. She was talking at a symposium on the tokenization of real-world assets (RWA) and liabilities held by the Office of the Comptroller of the Currency (OCC). For those less familiar with the DTCC, it processed $2.5 quadrillion in securities transactions in 2022.
“If you’re speaking about U.S. public equities markets, there is a disconnect because of the performance and scale component,” she said.
One of the key advantages of blockchain is the ability to have atomic settlement in which the asset and payment exchange simultaneously, delivery versus payment (DvP). That doesn’t have to be instant. It can happen one day after a trade.
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