DTCC's blockchain pilot with Digital Asset — Canton Network privacy + atomic DvP eliminates fails.
"The trade arriving from the securities rail's execution venue into Canton's post-trade processing."
Cross-rail reference: Stages 1-4 fired on the Securities Trading rail. The executed trade enters Canton Network's post-trade layer via DTCC's submission gateway. L5 lit only — handoff is a recordkeeping event.
"A Chinese Wall inside a multi-party transaction — each participant sees only the data they're entitled to, yet the transaction settles atomically across all parties."
Canton's sub-transaction privacy model ensures each participant sees only their slice of the settlement. This is compliance by architecture — data minimization (D15, GDPR alignment) is built into the protocol, not layered on top. Daml smart contracts orchestrate the multi-party workflow. L1+L2+L3 lit — privacy enforcement runs at every layer below the enforcement line. Unlike public blockchains where all data is visible, Canton reveals nothing beyond what each party needs.
"The holy grail of post-trade: true atomic DvP where the security and the payment move in the same transaction. No fails, no partial settlements, no Herstatt risk."
Securities and payment settle atomically on Canton — both legs execute in the same transaction or neither does. This eliminates the settlement fail problem entirely. No need for NSCC's fail management, no SEC Rule 204 close-outs, no buy-in notices. L2+L3 lit: consensus and execution enforce atomicity. D9 (prudential) applies — the CCP's role shifts from fail management to atomic settlement coordination. The compliance innovation: replacing process with architecture.
"The custodian bank updating the client's position — securities credited, cash debited, the settlement is reflected in the books."
Each participant's position updates on their private Canton sub-ledger. Because of Canton's privacy model, each participant sees only their own updated position — not the counterparty's. L4+L5 lit: position updates are policy-enforced at the application layer. Custodians and broker-dealers reconcile against their internal books, but reconciliation is trivial because the atomic settlement is the authoritative record.
"Filing the trade report — but because settlement was atomic, there are no fails to report, no amendments to file, no reconciliation breaks to resolve."
Regulatory reporting captures the full lifecycle. Because settlement is atomic and Canton provides privacy, the reporting layer extracts only the data each regulator is entitled to — FINRA gets trade data, the SEC gets position data, tax authorities get PnL. L5 Application lit only. Structural note: Canton's architecture means post-trade reporting is cleaner than traditional DTCC — no fails, no amendments, no reconciliation exceptions. The complexity that drives most post-trade compliance costs simply doesn't exist.
Resolved 5 steps across 1 chain(s). 0 threshold(s) triggered. Frameworks: Common Reporting Standard / FATCA.
Coverage notes: 5 disclosed gap(s).