Robert Palatnick has no delusions about the changing role of the Depository Trust & Clearing Corporation (DTCC), a centralized transaction processing firm that has recently been in the crosshairs of blockchain disruptors.
Yet, the chief technology architect at the post-trade services behemoth (it processes $1.5qn in annual transactions) tells CoinDesk the DTCC‘s strengths in risk management are no less important in a blockchain world. What will change, he now believes, is the technology the company employs.
While some startups using distributed ledger technology are working to undermine centralized transactions processors, others have joined in the fight to modernize the existing infrastructure.
So far, the DTCC has publicly announced its work with two Wall Street startups, Axoni and Digital Asset. But Palatnick says they’re “in different levels of conversations” with at least a half dozen others.
The DTCC announced its first collaboration with a startup with Digital Asset in March. The private blockchain trial was designed to show that distributed ledgers could bring efficiency to the market for repurchasing agreements, which accounts for an estimated $2.3tn in transactions daily.
But this blending of expertise and experience between the two companies is about more than quickly getting a product to market, according to Chris Church, chief business development officer of Digital Asset.