First major Step Toward a Wall Street Blockchain

The Depository Trust and Clearing Corporation, or D.T.C.C., is a company that most of us have never heard of unless you are interested or strongly vested in the financial sector. They are essentially the back end of Wall Street. DTCC’s databases are used in almost every major bank and financial institution in the country and they play a role in recording and reporting nearly every stock and bond trade in the United States.

 

Recently, DTCC has come out and said they will be replacing one of their largest databases with new software inspired by the digital currency Bitcoin. The project is being lead by IBM who has been pushing hard to get into the blockchain area, which is the technology introduced by Bitcoin.

 

Bitcoin is different than other global currencies because it has no central system, such as the banking systems set in place in our current financial systems. All Bitcoin transactions occur on a global ledger called a blockchain. This blockchain is maintained and updated by a series of computers all over the world. This process is especially interesting to Wall Street bankers because it allows real-time deals and trades without being bottlenecked by a central authority or bank. Not having a more central design is also prevention against hacking making it tougher for criminal elements to access the currency.

 

This new project will not be using the Bitcoin blockchain but will instead build its own system that will operate similarly to a blockchain. This distributed ledger will be available to financial institutions to update and view at the same time, but it will only be open to invited participants and banks.