Reflections on DTCC’s Guiding Principles for Post-Trade Processing of Tokenized Securities

  • Existing regulations work for existing technologies, but now we have the ability to control assets using digital signatures, and hold these assets digitally, and have guaranteed bilateral and multilateral automation to improve the way we transact and manage assets.
  • Much of the paper is about whether security tokens should be recorded on permissionless networks (eg Bitcoin, Ethereum, EOS, etc) or permissioned networks (eg Corda).
  • On risk management “Additionally, if a Security Token Platform assumes a critical role in effecting securities transactions as well as custody and asset servicing, the question arises as to whether the platform should have in place adequate measures to address possible unavailability or discontinuance of its activities.

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