State Street to provide custody for new digital cross-border securities settlement infrastructure

The Digital Securities Depository Corporation (DSDC) is a cross-border securities settlement infrastructure for digital depositary receipts (DDRs).

By Jonathan Watkins

State Street has been selected to provide custody services to the Digital Securities Depository Corporation (DSDC), a cross-border securities settlement infrastructure for digital depositary receipts (DDRs) in the US public market. 

DSDC is a new US company that provides the structure for governance and support of the infrastructure network which is enabled by KALYP Technologies, a UK-based technology provider for distributed market infrastructure to the world’s securities industry.

The securities underlying the DDRs will include the non-US listed equity securities DSDC holds in custody with State Street. 

State Street will provide safekeeping, transaction settlement, dividend collection, and FX payment services to DSDC with respect to its holdings of non-US listed equity securities.  

At launch, the DSDC network said it aims to deliver UK’s FTSE 350 constituent equities more efficiently into the hands of US investors. 

“State Street is delighted to be working with DSDC to support its growth strategy to diversify into additional markets,” said Nadine Chakar, head of State Street Digital. “This mandate is another example of State Street Digital continuing to deliver on our broader global strategy of helping to build out the crypto and digital assets ecosystem.” 

Launched in June of this year, State Street Digital was created to address the industry’s evolving shift to digital finance and focuses on innovations in crypto, central bank digital currency, blockchain and tokenisation. 

“State Street is one of the largest and most respected custodians globally,” said Alistair Jones, CEO of DSDC. “Having them take care of the custody activities for the underlying securities of our digital cross-border securities brings considerable confidence to both investors and our other network members. This allows us to concentrate on our core competencies of building and expanding the network beyond the initial group of regulated institutions.”