DTCC Tests Blockchain Project With 15 Global Banks

Depository Trust & Clearing Corporation (DTCC) said it advanced to the testing phase of its ground-breaking project to move its credit derivatives Trade Information Warehouse (TIW) to blockchain platform and cloud.

15 of the world’s largest global banks are participating in the project with DTCC, the premier post-trade market infrastructure for the global financial services industry.

U.K.-based Barclays is one of them, while the other 14 banks were not named.

DTCC said in a statement that upon successful completion, it expects to move to an open testing phase by the end of the year. Testing will be completed in the first quarter of 2019 before going live.

“The transformation of DTCC’s Trade Information Warehouse using distributed ledger and cloud technology, along with the modernization of MarkitSERV’s confirmation system, is truly a ground-breaking effort pushing the boundaries of technology use in the industry,” said Chris Childs, CEO of DTCC DerivSERV.

Lee Braine from the Chief Technology Office at Barclays said “this exciting project will bring distributed ledger technology to life in a demonstrable way that will enhance efficiencies and lower costs and risks for the industry”.

The consortium of IBM, Axoni, and R3 is providing the technical support to recode the functionality of the Trade Information Warehouse, utilizing DLT and the cloud in only 18 months.

TIW provides lifecycle event processing services for almost all credit derivative transactions worldwide, worth $11 trillion. The warehouse’s customer base includes major global derivatives dealers and more than 2,500 buy-side firms and other market participants in over 70 countries.

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