Who is Whitney and What is Project Ion?
DTCC is dipping its toes into future technology waters to keep ahead of new opportunities. Two projects have been named and launched to cover clearing and settlment in one, and private securities in another.
Project Ion (Clearing and Settlement)
This project aims to explore the possibility of a radical new settlement approach to reduce cost, risk and time. A Proof of Concept platform has been built which is being evaluated by the industry.
Over the past several years, DTCC has undertaken an aggressive analysis of its core clearing and settlement processes, aiming to further modernize the backbone of the US capital markets infrastructure. Project Ion explores whether the digitalization of assets and application of DLT can accelerate settlement and reduce cost and risk for the industry.
As part of this effort, DTCC is proposing a future vision of an alternative digital settlement service, with the potential to offer the benefits of accelerated settlement, retain the advantages of central netting and prevent fragmentation of the clearing and settlement ecosystem. DTCC developed a proof of concept (POC) to validate the proposed business and operational concepts included in this initiative, and is now engaging the industry to assess market demand.
“The financial services industry is in the midst of a technology revolution that offers an extraordinary opportunity to adapt and embrace new technologies and service models to prepare for the future of post-trade,” said Murray Pozmanter, Head of Clearing Agency Services and Global Operations and Client Services at DTCC. “Project Ion is about working with the industry to further the value proposition on accelerated settlement leveraging new capabilities such as DLT and tokenized securities, and to learn how DTCC can best deploy these technologies to deliver additional value to clients and the industry.”
Project Whitney (Private Assets)
This project aims to explore how to support private firms to tokenise assets throughout the issuance and secondary market lifecycle.
Recognizing that companies are staying private longer and continue to see increased investor interest, Project Whitney is a prototype focused on exploring the potential for asset tokenization and digital infrastructure to support private market securities, from issuance through secondary markets. While public markets are highly efficient, that same efficiency is not enjoyed in the private market where many operating functions are still dominated by manual processes and the few digital solutions that are available exist in silos.
DTCC is working with the industry to validate Project Whitney’s key concepts and workflows. This multi-phase project will assess the practical and commercial viability and value of a modern digital infrastructure supporting private market securities.
“The private markets are ripe for increased levels of automation and lack much of the infrastructure that has supported the public markets for decades. Project Whitney presents an exciting opportunity to leverage emerging technologies and develop completely new solutions from the ground up. We look forward to continuing our exploration of this area with the industry and in leveraging our vast infrastructure expertise,” stated Jennifer Peve, Managing Director, Business Innovation at DTCC.
- DTCC page here including two PDF case studies