The Nasdaq has introduced an enhancement to its Depository Withdrawal at Custodian (DWAC) service, which is now enabling broker-dealers to execute securities transfers with the Depository Trust Company (DTC) in a matter of minutes. This marks a substantial improvement over the previous system where such transactions could take weeks to complete.
The updated DWAC service plays a pivotal role in the tokenization of traditional assets into digital tokens on blockchain networks. This process is expected to not only broaden investment opportunities but also promote market liquidity. One of the notable benefits listed for this advancement is the increased accessibility it provides to retail investors, who can now more easily participate in markets that were traditionally dominated by institutional investors.
The transfer procedures and reduced costs associated with DWAC are expected to democratize the investment landscape. The DTC, acting as custodian under the oversight of the Depository Trust & Clearing Corporation (DTCC), is tasked to ensure that transactions maintain high standards of security and transparency.
The launch of the enhanced DWAC service is recognized as a critical step in improving market efficiency and is seen as a milestone in the financial industry's ongoing digital transformation. It is anticipated that this development will propel further adoption of blockchain technology within the sector.
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