The DTCC is exploring the potential of issuing a stablecoin according to a report from The Information. A DTCC spokesperson confirmed that it is “monitoring policy developments in the U.S. Congress and regulatory agencies, and will continue to assess our options, including the potential of issuing a DTCC stablecoin, if needed,” according to the Block. We contacted the DTCC but didn’t receive a response in time for publication.
The DTCC is the world’s largest central securities depository (CSD) and central counterparty (CCP) processing more than $3 quadrillion in post trade transactions annually. It handles the settlement of nearly all transactions on major US stock exchanges.
It’s worth putting this report in context, as the organization is a participant in other major institutional initiatives. The most noteworthy is Fnality, the institutional settlement token that is backed by reserves held at the central bank. Any institution that wants to use the token for settlement would transfer money to the Fnality Bank US central bank account and mint the token. In the UK, the only drawback is this would only be accessible by firms with access to central bank accounts. However, the current version of the US GENIUS Act stablecoin legislation also supports central bank money as reserves and has no such restriction.
Fnality is backed by more than 20 global institutions including the DTCC, Nasdaq, Goldman Sachs and numerous systemically important banks. It is already live in the UK and in April, Fnality Bank US received a Connecticut temporary certificate authority. In other words, it has an 18 month interim approval as a state chartered innovation bank.
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