Digital Securities Management (DSM)

The DSM Solution Benefits News & Insights Get in Touch With Us

MODERNIZES DIGITALIZES
STANDARDIZES AUTOMATES

DTCC’s Digital Securities Management (DSM) is a private market, post-trade infrastructure solution that helps eliminate manual processes, reduce costs, and bring private-market operational flows in line with other streamlined and efficient asset classes. DSM’s core functionality leverages cloud-based architecture and an API-first design, while providing optional, blockchain-agnostic functionality to tokenize representations of securities managed by DSM. DSM does not replace or displace any existing market participants; rather, it is designed to enhance workflows by standardizing market infrastructure and facilitating the collection and management of applicable private-market securities and trade-related data that is consumed and used by industry participants. Initially supporting pre-IPO equity, DSM is designed to expand to a broad range of private-market instruments, including funds, real estate, debt, and others.

THE DSM SERVICE IS CURRENTLY UNDER DEVELOPMENT AND WILL NOT BE AVAILABLE UNTIL IT IS FILED WITH AND APPROVED BY THE APPLICABLE REGULATORY AUTHORITIES

DSM will be an optional service offered and operated by The Depository Trust Company (DTC), a wholly owned subsidiary of DTCC. Implementation of DSM as a DTC service is subject to review and approval by the U.S. Securities and Exchange Commission (SEC).

USER BENEFITS

Eliminates paper-based transfer of ownership
Decreases costs, increases efficiency and eliminates errors

Harmonizes data and documentation standards for private market securities
Creates industry-wide common asset identifiers

Centralized stock record which can be leveraged by all market participants
Allows broker-dealers to rely on DSM as the ‘golden source’ record of ownership for DSM securities held on behalf of investors

Reduce the need for siloed solutions
Provides cost mutualization of non-differentiated services, in line with the role DTCC serves in other markets

Automates T+1 (or later) settlement
Leverages existing DTCC settlement processes

Maintains Issuer-driven process to create transfer restrictions
Eliminates operational and labor-intensive enforcement processt

THE GROWTH [IN PRIVATE MARKETS] IS OBVIOUS. THE APPETITE FOR PRIVATE MARKETS INVESTMENTS, PARTICULARLY PRIVATE EQUITY, IS A PHENOMENON WE ARE SEEING ACROSS OUR WHOLE PLATFORM.

- Darren Cannon, Managing Director, Global Alternative Operations, BlackRock

IT’S AMAZING TO ME HOW MANY COMPANIES ARE USING [EXCEL] SPREADSHEETS TO TRACK SOMETHING WORTH BILLIONS OF DOLLARS. THAT LEVEL OF INVESTMENT USING THAT TYPE OF TOOL IS RISKY AND UNAUDITABLE.

- Carine M. Schneider, President, AST Private Company Solutions, Inc.