DTCC and iCapital partner to modernize private market infrastructure

DTCC and iCapital have entered into a strategic collaboration to modernize private market infrastructure. The partnership aims to enhance automation, standardization, and connectivity across the private investment lifecycle, addressing operational challenges such as manual processes and fragmented data exchange.

As part of the agreement, DTCC has made a strategic investment in iCapital, though specific financial terms were not disclosed. The initial phase of the collaboration will focus on integrating DTCC’s Alternative Investment Product (AIP) system with iCapital’s alternative investment platform. This integration is intended to streamline transaction processing, data exchange, and reporting for private funds, private loans, and real estate.

The companies also plan to explore the application of new technologies, including distributed ledger technology (DLT) and asset tokenization, to private market operations. This could potentially extend DTCC’s existing digital asset capabilities from public markets into the private sector, facilitating the issuance and management of tokenized private fund interests.