DTCC launches Project Ion, the DTL-based private settlement platform

Sat 27 August 2022 ▪ 8:00 ▪

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Cédrick Aimé GUELANG OFALABEN

The commissioning of the Project Ion Depository Trust & Clearing (DTCC) platform is now operational. Until now, it was in its development stage as an alternative settlement blockchain based on Distributed Ledger Technology (DTL). This go-live is part of a parallel production environment with an average of nearly 100,000 daily bilateral stock trades. A figure that can reach a peak of 160,000 transactions on peak days.

DTCC launches the private Project Ion platform supported by DTL

DTCC wants to speed up transaction processing times

The Wall Street Giant Depository Trust & Clearing (DTCC), which handles all stock market transactions in the United States, just made a big announcement. In fact, it proceeds launch of a new private platform, whose role will be to accelerate transactions on the blockchain. It was through a press release that the DTCC unveiled Project Ion as a parallel alternative settlement blockchain.

It was in 2020 that this platform was launched as a pilot program before later becoming a development program. We can read in the press release published by the DTCC that almost 100,000 bilateral transactions on shares are now possible on a daily basis. This figure can even reach a ceiling of 160,000 during peak days. Despite this commission, the Depository Trust Company remains the authoritative source. Project Ion will leverage blockchain technology to support T + O settlement fees.

Setting up the platform is essential, as on average it takes up to 48 hours to finalize a stock exchange transaction. Project Ion fails to end the traditional DTCC regulations. On the contrary, the launch will take place in parallel and the customer will opt for the technology that corresponds to him.

DTCC succeeds where classic blockchains fail

The democratization of blockchain technology is gaining ground. We see more and more traditional financial firms taking an interest in this. The last to date remain Goldman Sachs (GS) and JPMorgan (JPM). The authorization of the DTCC project, which is however private, remains an exception in the sector. Recall that classic blockchains such as Bitcoin and Ethereum have not yet had this type of approval.

The commissioning of Project Ion is also the result of the collaboration between DTCC and several other companies. The most important are Citadel Securities, Credit Suisse (CS), BNY Mellon (BK), Barclays (BCS) and Charles Schwab (SCHW). It is mainly his partnership with software provider R3 that crystallizes attention. Indeed, DTCC wishes to launch its platform based on R3’s DLT Corda software.

Conclusion

In short, the Project Ion platform will have to offer customers an alternative, reliable, safe and clean processing service. If needed, it can rely on DTL for companies looking to benefit from emerging technology. DTCC asked for the collaboration of several partners to carry out this project. It has partnered with leading enterprise technology provider R3 to leverage its Corda DLT software. It should be noted that this commissioning does not detract from the traditional settlement systems which remain the benchmark.

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Cédrick Aimé GUELANG OFALABEN avatar
Cédrick Aimé GUELANG OFALABEN

PhD student in financial law and expert SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Thanks to his articles he naturally participates in the daily blockchain revolution for a better democratization of DeFi.

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