DTCC Reportedly Explores USD Stablecoin Amid Regulatory Uncertainty

The Depository Trust & Clearing Corporation (DTCC), a key player in U.S. and global financial markets, is exploring the issuance of a U.S. dollar-backed stablecoin to modernize and accelerate transaction settlements using blockchain technology. This stablecoin, described as "on-chain cash," would enable near-instant settlement by eliminating the need for funds to pass through multiple banks, potentially enhancing efficiency in securities transactions and cross-market asset movements. DTCC's move aligns with its broader digital asset strategy led by Nadine Chakar and complements existing projects like its distributed ledger-based stock settlement system, Project Ion. However, DTCC is awaiting clear regulatory guidance from the U.S. Congress before proceeding, as lawmakers consider legislation such as the GENIUS Act and STABLE Act to provide a regulatory framework for stablecoins. This initiative reflects a growing trend among traditional financial institutions and big tech to adopt stablecoins amid increasing institutional interest and improving regulatory clarity. If launched, a DTCC-backed stablecoin could significantly advance the integration of digital assets into regulated financial infrastructure, facilitating faster, more transparent, and efficient settlements.