The blockchain access function of the US DTCC transaction information database is “no one cares”

On March 11, the reprint of the Transaction Information Warehouse (TIW) project of the American Depository Trust and Clearing Corporation (DTCC) was launched in October 2022. The service has been delivered on cloud technology and supports distributed ledger technology (DLT) function at the access layer. However, it seems that no customer is interested in connecting through the latter.

Interpretation of this information:

The American Depository Trust and Clearing Corporation (DTCC) has relaunched its Transaction Information Warehouse (TIW) project using cloud technology and blockchain-based distributed ledger technology (DLT). The relaunch was announced on March 11th and began delivery in October 2022. However, despite the support for DLT, no customers seem to be interested in this functionality.

DTCC’s TIW project is intended to enhance and optimize post-trade activities for over-the-counter (OTC) derivatives. It aims to bring greater clarity, transparency, and risk reduction to the market by recording and tracking critical trade data in a centralized location. The previous iteration of the project had been in operation for over a decade and reportedly processed over one billion documents. However, it had become outdated and was in need of upgrading.

The new version of TIW is a cloud-based service, which is expected to offer greater flexibility, scalability, and security in data management compared to the previous system. Additionally, it supports DLT functionality at the access layer, specifically for connectivity to blockchain-based solutions. However, this feature has not gained traction, and no customers have utilized it.

One possible reason why customers have not shown interest in this function is that few blockchain-based solutions are currently available in the OTC derivatives market. In addition, there may be issues with interoperability, data privacy, and compliance that are hindering the adoption of DLT.

Despite the lack of customer interest in the DLT functionality, the relaunch of TIW is a significant investment by DTCC in modernizing its infrastructure and adopting new technologies. It also reflects the growing trend of financial institutions adopting cloud-based solutions and exploring the potential of blockchain and DLT.

In conclusion, DTCC’s relaunch of the TIW project using cloud technology and DLT support is a significant step towards modernizing post-trade processes for OTC derivatives. While the DLT functionality has not been utilized by any customers yet, it still represents an important investment in exploring the potential of blockchain technology for financial services.