DTCC invests in iCapital, plans collaboration for private markets, DLT
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Today the DTCC announced a collaboration with iCapital for private markets, as well as an undisclosed investment in the company. They aim to make operational workflows for asset managers and wealth advisors more efficient and additionally plan to partner on DLT and tokenization. iCapital has a DLT-based workflow solution which has been adopted by Morgan Stanley Wealth Management and integrated by fund administrator UMB Fund Services (UMBFS). The DTCC has been expanding its private market offering, the Alternative Investment Product, and intends to integrate this further with iCapital's infrastructure. Talia Klein, Head of Wealth & Investment Solutions of DTCC, will become an observer on iCapital's board of directors. She noted that "Private markets have traditionally lacked the operational standards that exist in public markets," saying that they want to "improve connectivity, streamline processes, and support continued growth responsibly." There has been a significant push to improve matters, but the full benefits aren't being reaped with the current approach. In a LinkedIn post, Klein was a little more direct about how each organization or platform has set its own standards, and how the lack of industry wide standards creates complexity and inefficiency. Both parties emphasized the complementary nature of the deal, with iCapital more focused on front and middle office...
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