STCs carry a large amount of data and can be wrapped within even larger “Master” STCs:
- Individual transaction data can be tagged within larger data files all the way through netting and settlement.
- Assets classes settled via legacy systems benefit from the use of STCs as larger amounts of data can accompany a transaction and be easily encased and encrypted within the STC.
Transactions that fall outside of standard settlement systems can also utilize STC technology as the tokenization protocol to facilitate transactions on current or future financial platforms, within distributed payments platforms, and/or for immediate settlement, virtually eliminating margin requirements and counterparty risk. In essence, the combination of a platform that allows for immediate settlement with STCs can in time usurp the need for larger netting systems.