Share this article
DTCC Pushes Back Blockchain Project to Avoid Brexit Complications
The DTCC has pushed back the release of its blockchain-based post-trade system for derivatives by several months, in part because of Brexit.
By Ian Allison
Updated Sep 13, 2021, 11:32 a.m. Published Oct 4, 2019, 4:20 p.m.
Make us preferred on Google
The Depository Trust & Clearing Corporation (DTCC) has pushed back the release of its blockchain-based post-trade system for derivatives by several months, in part because of complications created by Brexit.
The official line from the U.S. central securities depository (CSD) is that the delay, which has not been previously reported, isto allow for additional testing of the revamped trade information warehouse (TIW).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
A spokesperson for the DTCC told CoinDesk:
“The project is progressing well. DLT and cloud development have been completed and we continue to conduct in-depth industry-wide testing with our clients, vendors and technology providers. However, to ensure that this technology is implemented in a measured, prudent and most secure manner, we have allocated additional months for testing, to ensure that firms are 100 percent ready.”
But a person familiar with the technology testing process said the upset about to be caused by the U.K.'s departure from the European Union was also a factor behind the postponement.
The previously scheduled release of the new TIW system coincided with the week of Brexit, which is slated for Oct. 31.
“When Brexit happens, everybody has to open up a whole set of new accounts outside of the U.K. They basically have to kind of split their records; there have to be their E.U. records and their U.K. records,” said the source.
Assuming Brexit does happen, the source added, firms have an additional set of operational work to do and DTCC wanted to separate that from going live with TIW.
There are also other timing issues to do with market implementation, including new regulations from the Commodity Futures Trading Commission (CFTC), the source said.
DTCC did not provide an exact date for the re-scheduled release.
The transformation of the TIW from mainframe to cloud, using a distributed ledger designed by technology provider Axoni, is uniquely challenging because when it’s turned on, the legacy system will be switched off.
The TIW handles settlement and processing of $11 trillion of credit derivatives worldwide, making the upgrade, announced in January 2017, one of the most significant enterprise blockchain projects.
Union Jack image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
HYPE token's 30% surge is a story of crypto-traditional market convergence, treasury firm says
HYPE has surged 30%, outperforming bitcoin, ether and the CoinDesk 20 index by a big margin.
What to know:
- Hyperliquid's HYPE token has surged more than 30% to $33, far outpacing bitcoin, ether and the broader crypto market, as trading activity on the platform accelerates.
- The token rally represents the merging of traditional assets with the crypto world, according to Hyperion DeFi, which is a HYPE treasury company.
- Originally a crypto perpetuals exchange, Hyperliquid has expanded into tokenized trading of equity indices, individual stocks, commodities and major fiat pairs via its HIP-3 upgrade.
Top Stories
