DTCC is advancing its tokenization strategy by digitizing security entitlements rather than the shares themselves, aiming to enhance settlement efficiency. This approach contrasts with models that tokenize stock ownership directly, utilizing on-chain data to enable self-custody and composability. While DTCC's model operates within existing financial infrastructure, the direct ownership model records stock ownership on-chain through issuer registers, promoting innovation in decentralized systems. Both models are currently in use, each serving different aspects of the financial ecosystem.
DTCC's Tokenization Model Focuses on Security Entitlements
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