TLDR
- DTCC Phase 2 moves tokenized collateral from pilot work toward shared market infrastructure with Ripple.
- Ripple joins 50 participants testing AppChain tools for faster collateral movement across regulated financial networks.
- DTCC and Finadium say tokenized bonds, funds, and cash may reduce trapped liquidity buffers costs.
- The report links intraday repo to lower funding costs through minute-by-minute secured financing options models.
- AppChain aims to connect custodians, dealers, and collateral managers across multiple ledgers and markets globally.
DTCC Phase 2 is now moving from testing to real market infrastructure, and Ripple is part of the race. With tokenized collateral, AppChain, and near real-time asset movement in focus, the $115 trillion securities market could see faster funding, lower buffers, and stronger links between traditional finance and digital assets.
DTCC moves tokenized collateral toward production
DTCC has moved its collateral tokenization work beyond an early test stage. The project follows the “Great Collateral Experiment,” which began on April 23, 2025. The new phase centers on live infrastructure for tokenized collateral.
The work includes a tokenization service and the DTCC Collateral AppChain. DTCC describes the AppChain as shared infrastructure for collateral providers, receivers, managers, agents, and custodians. The goal is to support faster movement across markets and ledgers.
Ripple is listed among the 50 participants in Phase 2. Its role places the firm inside a wider effort to connect traditional finance with digital asset systems. The focus remains on regulated assets, not open crypto trading.
DTCC and Finadium also released research on tokenized collateral. The paper says bonds, money market funds, and cash can move faster as digital records. It says this may help firms manage liquidity with more control.
Ripple joins a wider AppChain test
The DTCC AppChain aims to link firms that now use separate systems. These firms often face delays when moving collateral between accounts, entities, and countries. That problem can grow near market close or outside business hours.
The research says tokenized collateral could reduce the need for large buffers. Firms often hold extra liquid assets because transfers can take time. Faster movement could help them place collateral only when needed.
The paper also discusses intraday repo as a possible use case. It says firms could borrow against collateral for short periods through a ledger. The model may lower funding costs when compared with longer funding options.
Nadine Chakar, DTCC’s Global Head of Digital Assets, addressed the business case. “Digital assets represent the next phase of capital and liquidity optimization in global markets,” Chakar said. She also referred to “smart assets with embedded data and programmability.”
Tokenized assets target collateral pressure
The research connects tokenized collateral with shorter settlement cycles. As markets settle faster, firms need to move cash and securities more quickly. They also need tools that work across time zones.
DTCC says the model may support near real-time collateral mobility. That means firms could update records and transfer assets with fewer manual steps. The paper says this can improve accuracy and reduce operational friction.
The report also links the model to stress management. During volatile periods, firms may need collateral in several places at once. Faster transfer tools could reduce pressure to sell assets at poor prices.
DTCC said its subsidiaries processed securities transactions worth USD $4.7 quadrillion in 2025. It also said its depository unit serviced securities from more than 150 countries. Those issues were valued at about USD $114 trillion.
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