DTCC, Clearstream and Euroclear co-author paper pushing for digital ledger interoperability as crypto scales

The Depository Trust & Clearing Corporation (DTCC), Clearstream, and Euroclear co-authored a 43-page white paper urging for greater interoperability within the decentralized finance (DeFi) ecosystem as digital asset adoption scales. The paper warns that network fragmentation is a pressing hurdle, leading to high operational costs, fragmented liquidity, and elevated risks if assets remain trapped in isolated pools. To overcome this, the authors call for standardization across five enduring capital market foundations: assets and liabilities, ownership, asset lifecycle protocols, ledgers, and legal compliance, drawing parallels to decades of successful standardization in traditional finance (TradFi). They specifically recommend data harmonization using common identifiers like ISIN, process integration similar to SWIFT protocols, and consistent assignment of roles for critical functions like custody and oversight to ensure integrity, security, and trust in the digital asset space.

(Source：The Block)