On April 2025, the Depository Trust & Clearing Corporation (DTCC) took the spotlight in Washington, D.C., as Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, delivered compelling testimony before the House Financial Services Subcommittee on Digital Assets.
Her message was clear: tokenization is poised to revolutionize financial markets by increasing automation, enhancing transparency, and slashing operational costs.
What Is Tokenization?
Tokenization refers to the process of converting traditional financial assets, such as stocks or bonds, into digital tokens recorded on a blockchain. These tokens can represent ownership, rights, or value, and can be traded seamlessly on digital platforms.
DTCC has been a strong advocate for regulated, secure infrastructure that supports digital securities and has already been piloting several tokenization projects aimed at modernizing post-trade operations.
Key Takeaways from Nadine Chakar’s Testimony
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Efficiency Gains: Tokenization could eliminate redundancies in current clearing and settlement processes, reducing the time it takes to finalize trades from days to minutes or even seconds.
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Cost Reduction: By automating manual processes and removing intermediaries, financial institutions can cut costs significantly.
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Market Transparency: Blockchain’s immutable ledger enhances real-time visibility across all participants, ensuring better compliance and auditability.
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Regulatory Readiness: DTCC emphasized its collaboration with regulators to ensure tokenized markets remain compliant while fostering innovation.
A Transformational Shift
Chakar stressed that tokenization is not just a theoretical concept but already in motion—with real-world pilots, strong industry interest, and growing infrastructure.
She also pointed out that tokenized financial products could open access to a wider range of investors by enabling fractional ownership and 24/7 trading.
What’s Next?
The DTCC continues to advocate for a collaborative approach between private-sector innovators and regulators. With strong institutional backing and a focus on regulatory compliance, tokenized finance could be the next leap in the evolution of capital markets.
As Congress evaluates its digital asset framework, DTCC’s voice highlights how legacy institutions and new technology can work hand in hand to build a more efficient, inclusive, and secure financial future.
