DTCC launches DLT-powered settlement platform Project Ion
The Depository Trust and Clearing Corporation (DTCC) has developed an alternative settlement platform called Project Ion that leverages distributed ledger technology (DLT).
DTCC says Project Ion has gone live in a segregated “production environment”, parallel processing an average of more than 100,000 bilateral equity transactions per day, while the classic settlement systems remain the authoritative record.
The new platform, which leverages R3’s Corda DLT software, was developed with a wide range of industry participants and fintech firms including BNY Mellon, Citadel Securities, Goldman Sachs, Robinhood and State Street.
DTCC says Project Ion will ultimately provide a “resilient, secure and scalable” alternative settlement service to clients and is being built to support a netted T+0 settlement cycle, as well as T+2, T+1 and extended settlement cycles.
DTCC’s managing director, president of clearing agency services and head of global business operations, Murray Pozmanter, says digitised assets and emerging technologies such as DLT are “shaping and evolving” the financial landscape.
“Project Ion is an important step forward in advancing digitalisation in financial markets and opens the door to new opportunities to drive greater efficiencies, risk management and cost savings for the industry,” Pozmanter adds.
DTCC is working on a phased rollout of the platform with a view to expanding it to DTCC subsidiary National Securities Clearing Corporation (NSCC) in order to take advantage of NSCC’s central counterparty (CCP) trade guarantee for every cleared transaction.