DTCC, Clearstream, and Euroclear warn about risks of blockchain network fragmentation

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Anastasiia Chabaniuk

04.03.2026

DTCC, Clearstream, and Euroclear warn about risks of blockchain network fragmentation — Major financial institutions call for interoperability standards for DLT

International financial market infrastructure providers DTCC, Clearstream and Euroclear have released a joint analytical paper calling on the industry to strengthen interoperability between distributed ledger technology (DLT) systems. According to the authors, the lack of unified standards could become a major obstacle to the growth of the digital asset market.

The 43-page report, prepared with input from Boston Consulting Group, emphasizes the need for data standardization, process harmonization, and consistent rules for market participants to prevent fragmentation in the rapidly expanding DeFi ecosystem, The Block reported.

The authors argue that interoperability between blockchain networks would unlock the full potential of tokenized assets, simplify the use of new financial products, and improve liquidity and asset mobility.

The report notes that fragmentation across different DLT networks has already become one of the key risks for scaling the industry. Without interoperability, assets remain isolated within separate networks, reducing liquidity and increasing operational costs for market participants.

The authors also warn that such fragmentation could heighten operational and regulatory risks, particularly as the trading volume and use of digital assets continue to grow.

In recent years, traditional financial institutions have been actively exploring the tokenization of real-world assets, including government bonds. For example, the Depository Trust Company recently received a no-action letter from the U.S. Securities and Exchange Commission (SEC) allowing it to launch a tokenization service for assets held in custody.

Traditional finance may serve as a model for blockchain infrastructure

The report suggests that the fragmentation issue could be addressed using approaches long established in traditional finance. In particular, the authors point to global standardization systems such as SWIFT messaging protocols and ISIN securities identifiers.

Key areas requiring standardization include asset and liability tracking, ownership structures, asset lifecycle and transfer protocols, ledger systems, and legal and regulatory frameworks.

According to Nadine Chakar, managing director and head of digital assets at DTCC, interoperability will be critical for scaling the digital asset market. She noted that industry participants must focus on shared data standards, risk management, and infrastructure integration to bridge traditional finance and DeFi ecosystems.

Why blockchain interoperability is becoming critical

Interoperability between blockchain networks is becoming increasingly important as the markets for tokenized assets and DeFi continue to expand. Today, many networks operate in isolation, making it difficult to move assets between platforms and reducing overall liquidity.

Analysts estimate that the tokenized real-world asset (RWA) market could exceed $10 trillion in the coming years. However, without common standards for data exchange and operational processes, the scaling of this infrastructure may remain limited.

For this reason, major financial institutions are increasingly advocating the creation of unified protocols for digital assets, similar to the standards that have long supported traditional financial markets, such as SWIFT and ISIN systems.

Earlier, we reported that Henri Arslanian believes the convergence of DeFi and CeFi could transform crypto prime brokerage.

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