DTCC, a New Jersey-based post-trade market infrastructure for the global financial services industry that helped process securities transactions worth over $2.5 quadrillion in 2022, has announced a strategic acquisition of Securrency, an institutional-grade blockchain firm, for an undisclosed amount. According to the announcement, the acquisition of Securrency by DTCC is expected to close within the coming few weeks. Following the acquisition, Nadine Chakar, the Chief Executive Officer (CEO) of Securrency, will be joining DTCC as the Managing Director, and the Global Head of DTCC Digital Assets, whereby he will be reporting to Lynn Bishop, DTCC Managing Director and Chief Information Officer.
In addition, Chakar will be joining the DTCC management committee to help bring the needed expertise to steer forward the new entity. Notably, DTCC will be absorbing more than 100 Securrency staff members including Dan Doney, the Chief Technology Officer (CTO) and also a co-founder of Securrency, and John Hensel, the Chief Operating Officer (COO) and also a co-founder.
Today, DTCC announced that we have signed a definitive agreement to acquire @Securrency, a leading developer of institutional-grade, digital asset infrastructure. Read more:
— DTCC (@The_DTCC) October 19, 2023
What the Acquisition of Securrency Means to DTCC
The Securrency acquisition is meant to help DTCC become a major provider of digital assets services amid the mainstream adoption of blockchain technology by governments, institutional investors, and retail traders. Furthermore, DTCC intends to further specialize in the tokenization industry which is projected to run into trillions of dollars in the near future. For instance, DTCC subsidiaries processed securities transactions valued at about $2.5 quadrillion in 2022, and the figure is expected to further grow in the near term.
“…By bringing together DTCC’s commitment to providing market stability and our unparalleled network of financial market participants with the sophistication of the Securrency technology, we will be in a leading position to unlock the value of digital assets and help guide the industry through its digital transformation journey. We believe this next generation of financial market infrastructure will further reduce settlement times, facilitate market transparency and risk management, enhance regulatory oversight and controls, and unlock efficiency and innovation to create an improved investor experience,” Frank La Salla, the President, CEO, and Director at DTCC, noted.
The new entity formed from Securrency is expected to help DTCC tokenize the securities assets on blockchain technology in a bid to reach more global markets. Moreover, blockchain technology offers near-instant payment settlement and vast options in cross-chain interoperability. The DTCC Digital Asset platform will focus on executing client-driven pilot programs in a bid to help the parent company achieve its mission of providing secure access to financial services.
As a clearing service provider and wealth management company, DTCC intends to largely use blockchain technology to ensure reliable, secure, and fast access to its institutional clients.
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