Digital Assets - Transforming Collateral Management

STRATEGIC OUTLOOK: FROM OUR GLOBAL HEAD OF DIGITAL ASSETS Digital asset technology is set to have a transformational effect on financial markets, bringing new efficiencies, business models, and liquidity opportunities to the ecosystem. It gives us the opportunity to reshape the entire value chain, from primary market issuance to post-trade activities like custody and asset servicing. Institutional demand for tokenization of real-world financial assets is growing, and its impact on capital markets could be similar to the impact the Internet had on information exchange. This technology promises to revolutionize how we approach capital markets, unlocking new value and streamlining processes across the industry. THE PATH TO PROGRESS Let’s face the facts. The digital asset landscape is evolving, and there’s work to be done to fully harmonize standards, controls, and operations. The strength of US markets is that we have one post-trade provider; we’re aiming to do the same for digital markets. While we have enough regulatory and legal clarity to move forward, the challenge lies in building a common infrastructure that enables interconnectivity across the ecosystem. This is more than systems communicating; it’s about aligning on standards and frameworks that bring traditional and DLT-based systems together. We’re rallying the industry towards this goal to drive integration and progress. ADVANCING THE ECOSYSTEM Today’s digital asset initiatives often involve only a handful of participants. They’re frequently implemented on different networks, with different protocols for connectivity and functions. We need to work together. Digital asset initiatives need an ecosystem of participants to succeed, from sell and buy-side firms, to custodians, to financial market infrastructure providers to fintechs. As we create the ecosystem to power digital markets, we need to prioritize new innovations that can co-exist, interoperate, and build upon each other, while embracing the DTCC is leading the work to coalesce the industry around solving this challenge. Our Digital Launchpad is the industry’s path to production today, as we build the digital infrastructure of tomorrow . Why are we doing this? Because, as the post-trade market infrastructure for the world’s largest capital market, it’s our responsibility to provide the same certainty, scalability, and resilience to digital markets as we do to traditional ones – delivering on our participants’ expectations and the future of finance. We draw upon years of experience leading the markets through change – most recently evidenced through our work moving the markets to a T+1 accelerated settlement cycle in the US and beyond. DTCC Digital Launchpad is more than just a milestone – it is a game-changer in our journey to build an open and interoperable digital asset ecosystem. What sets the Launchpad apart is that we’re not just offering another sandbox; we’re providing a robust, scalable, end-to-end technology stack designed to help the market collaborate and address some of its biggest pain points. Our goal is to bring together the capital markets ecosystem – including clients, peers, partners and global regulators – to drive real progress and efficiency, moving the industry toward widespread adoption of digital technology. I encourage you to read on about our work with JSCC to transform collateral management using DLT. It’s the first of many experiments on the DTCC Digital Launchpad. I look forward to your collaboration as we build an interoperable digital asset ecosystem that will power digital markets for years to come. See you on the Launchpad! diversity of approaches from past initiatives. THE FUTURE OF DIGITAL INNOVATION

NADINE CHAKAR Managing Director, Global Head of DTCC Digital Assets

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DTCC DIGITAL LAUNCHPAD

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