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DTCC is mulling the potential of issuing a stablecoin; a fully-authorized bank subsidiary, limited purpose bank charter and access to central bank account to make execution hassle-free

June 18, 2025 //  by Finnovate

The DTCC is exploring the potential of issuing a stablecoin. It is “monitoring policy developments in the U.S. Congress and regulatory agencies, and will continue to assess our options, including the potential of issuing a DTCC stablecoin, if needed.” For the DTCC specifically, implementation would be relatively straightforward from an infrastructure standpoint. It already has a bank subsidiary, which unlike Fnality Bank US, has full authorization. The Depository Trust Company (DTC), which is one of its main subsidiaries, operates as a limited purpose trust company under New York State banking law. It has access to a central bank account because it enables huge volumes of settlement using Federal Reserve money. Hypothetically, if the DTCC were to issue a stablecoin it could be a very high quality one, using a similar model to Fnality. In other words, perhaps backed by central bank money. Typically stablecoins are mainly backed by Treasury bills, which are usually very stable. But there have been volatile episodes in the money markets, and central bank reserves side steps this risk.

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Category: Crypto & Blockchain, Innovation Topics

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