While most securities are processed electronically, certain assets remain in physical form and require specialized handling. Managing these securities can involve secure storage, manual movement, detailed recordkeeping and ongoing administrative support, creating additional cost, complexity and operational risk for firms.

DTC’s Custody Service gives participants a centralized way to hold and process eligible physical securities that cannot be maintained in DTC’s core depository services. Participants retain ownership and control of their holdings while DTC provides secure safekeeping and supports related servicing and transaction activity.

By consolidating physical assets with a trusted market infrastructure provider, firms can reduce the burden of maintaining their own storage and handling processes, improve visibility and recordkeeping and simplify day-to-day administration. The service helps participants strengthen control over physical positions and reduce the risks associated with certificate loss, damage, unauthorized movement and manual processing.