DTCC CEO Addresses Blockchain Disruption in Annual Shareholder Letter

NEWS
Stan Higgins
Apr 14, 2016 at 19:54 UTC  |  Updated  Apr 15, 2016 at 14:11 UTC

In a letter to shareholders, the chief executive of major US clearinghouse DTCC wrote that the company seeks to be "at the forefront" of the development of blockchain and distributed ledger applications in the finance space.

President and CEO Michael Bodson wrote in the letter that the company – which recently held a symposium on the technology and is working with industry startup Digital Asset Holdings on a post-trade blockchain trial – wants to play an active role in the exploration and adoption of the technology

Under a subsection entitled "Embracing Disruption", Bodson described how DTCC sought counsel with industry stakeholders, going as far as establishing an "Office of Blockchain Strategies and Research" to spearhead internal experimentation.

Bodson wrote:

"We intend to be at the forefront of this issue by helping to spearhead industry experiments and use cases, serving as a leader in the governance of open source, fostering collaboration among market participants and by making strategic investments in partners that can help advance the technology."

Bodson called the potential presented by the technology a "once-in-a-generation opportunity", while at the same time reflecting on the oft-hyped nature of blockchain – a possible nod to a January white paper released by DTCC that aimed to calm expectations at major financials.

"While the rhetoric may have been overheated at times, the fact is that we are excited by this once-in-a-generation opportunity to reimagine the post-trade infrastructure to address long-standing operational challenges," he wrote.

While Bodson did not make specific commitments or announcements in the letter, DTCC has moved in recent weeks to stake its ground in the blockchain space, announcing its partnership with Digital Asset and indicating that it would be open to an evolution of its business model in the face of a shifting technological landscape.

Images via DTCC, Shutterstock

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