DTCC and JPMorgan Pilot On-Chain Settlement with Controversial ’Undo’ Feature
The Depository Trust & Clearing Corp. (DTCC) and JPMorgan Chase & Co. are advancing a blockchain-based settlement system that could compress transaction timelines—but with a catch. The pilot includes a contentious 'undo' function, challenging traditional notions of finality in securities trades.
Settlement—the back-office process ensuring buyers receive securities and sellers get paid—remains a friction point in global markets. Tokenization promises near-instantaneous settlements, yet regulators still grapple with how to treat on-chain cash legs and securities entries in official ledgers.
The initiative follows JPMorgan's MONY fund experiment, which tests KYC-compliant cash movements on-chain. Meanwhile, DTCC's service received SEC staff approval despite unresolved questions about reconciling blockchain-native transactions with legacy systems.
