Project Ion

DTCC’s Project Ion is a new initiative designed to leverage distributed ledger technology (DLT) for settlement while upholding the DTCC’s rigorous resiliency and safety standards. Currently in pilot as an MVP (minimum viable product), Project Ion provides a parallel record of daytime bilateral deliveries of equity securities between The Depository Trust Company (DTC) participants on the existing DTC settlement system.

• About

  Currently in pilot as an MVP (minimum viable product), Project Ion provides a parallel record of daytime bilateral deliveries of equity securities between DTC participants on the existing DTC settlement system.

  The existing “classic” DTC settlement system remains the authoritative source and is responsible for processing the actual movement and exchange of cash and securities. The Project Ion MVP pilot does not facilitate any transaction processing.

  The MVP of Project Ion is designed to act as a parallel book and infrastructure, demonstrating the ability to reflect specific activity as it is occurring in the DTC classic system. It also demonstrates scalability, recording a peak of 160,000 transactions on a peak day.

• Who Can Use the Service

  With firms across the industry at different levels of maturity around DLT adoption, DTCC is developing Project Ion to provide optionality and flexibility to DTC Participants. Those who want to be ready to leverage Project Ion functionality can begin development efforts immediately, while others can continue to use DTCC classic clearance and settlement systems.

• Benefits

  Project Ion is designed to adhere to rigorous regulatory standards and deliver the resiliency, volume capacity, security, scalability and risk controls that DTCC is known for. The Project Ion platform is hosted and managed at DTCC.

  Project Ion is being built to support the same settlement timeframes as DTC’s classic systems and is being delivered as settlement time agnostic, including T+1, T+2, T+0 and more.

• How the Service Works

  Project Ion provides a parallel book and infrastructure for limited bilateral transactions processed on the DTC existing settlement system, with DTC’s existing systems remaining the authoritative record of transactions.

  With the MVP pilot now live, DTCC is working closely with broker/dealer and bank clients on designing a phased expansion of Project Ion and continuing to enhance the service to address client and industry needs and feedback.

  DTCC’s launch of this MVP of a private, permissioned DLT platform in pilot follows a successful prototype phase with many of the world’s leading market participants and technology provider firms.

• Related Products and Services

  https://www.dtcc.com/settlement-and-asset-services/settlement

  https://www.dtcc.com/ust1/by-the-numbers

• For More Information

  See our White Paper, “BUILDING THE SETTLEMENT SYSTEM OF THE FUTURE” 

  For more information, please contact [email protected].