The convergence of digital and traditional finance is more than a technological shift. It is a melding of established rules, legal frameworks and proven processes with the efficiency, transparency and programmability of distributed ledger technology (DLT), writes Nadine Chakar, DTCC managing director and global head of its Digital Assets division.
“DTCC is integrating tokenization and blockchain capabilities directly into our existing infrastructure to leverage decades of reliability while unlocking the new possibilities that digital assets present,” she wrote. “As the financial industry transitions toward tokenized finance, the coexistence of traditional market infrastructure with new, blockchain-based systems is not just a strategic choice — it is an operational necessity. The build-out of digital asset rails, institutional-grade custody, digital asset signature apparatus and advanced data services must progress alongside the established systems that underpin today’s markets.”
This dual-track approach recognizes that market participants will transition at different speeds, influenced by technology readiness, talent availability and institutional priorities. It also ensures that, as interest grows in emerging asset classes — whether for exposure, diversification, or efficiency gains, such as 24/7 clearing, settlement, and redemption — the infrastructure is ready to support both early adopters and those who follow later.
“As a financial market infrastructure provider, our role is to remain in lockstep with industry evolution while safeguarding the integrity, stability, and efficiency of markets. This means preserving our core mandate: minimizing counterparty, liquidity, and settlement risks—regardless of whether transactions are executed on traditional systems or new digital rails,” Chakar wrote.