DTCC white paper calls for interoperability as key to DeFi growth

The U.S. Depository Trust & Clearing Corporation (DTCC) has published a 43-page blockchain white paper on the need for interoperability in the DeFi ecosystem, The Block reported. The report, co-authored by DTCC, Clearstream, and Euroclear with advisory from Boston Consulting Group (BCG), argues that data standardization, process integration, and clearly defined participant roles are necessary to expand the digital asset securities market. It warns that growing fragmentation between distributed ledger technology (DLT) networks could trap assets in isolated pools, increasing operational costs and regulatory risks. The paper proposes standardization across five key areas of capital markets: assets and liabilities, ownership, asset lifecycle and transfer protocols, ledgers, and regulatory compliance. Nadine Chakar, head of digital assets at DTCC, explained that interoperability is the core foundation for the adoption and expansion of digital assets. She added that traditional finance (TradFi) and DeFi must be connected through common goals for data, standards, and risk management.