DTCC Applies $5 Haircut Rule to XRP, Suggesting Institutional Interest

The Digital Trust Company (DTCC) has a $5 haircut rule for collateral eligibility on its platform. This means that assets trading below $5 are not considered viable as collateral, but those above this level may qualify if they meet other requirements.

When using an eligible asset, such as XRP, to satisfy a $100 collateral obligation, the DTCC applies a 35% haircut. This translates to approximately $135 worth of the asset being required, reflecting excess collateral rather than a penalty against the asset itself.

The inclusion of XRP in DTCC educational materials discussing acceptable collateral is seen as one of the strongest indications yet of how institutions may be preparing to incorporate digital assets into future financial operations. The DTCC settles over $4 quadrillion in securities transactions annually and advances tokenization initiatives involving an estimated $115 trillion in assets.