Transfer Methods#
There are two Transfer Methods supported by DTC:
DRS — The Direct Registration System (DRS) enables investors to hold assets in book-entry form directly with the issuer.
Leveraging DTC’s connection to FAST transfer agents, investors (or their brokers) can electronically move shares into or out of DRS without any paper certificates.
DRS Method: Additional Resource(s)
See DTCC DRS Overview for more information.
DWAC — The Depository Trust Company’s (DTC) Deposit and Withdrawal at Custodian (DWAC) service provides participants with the ability to make electronic book-entry deposits and withdrawals of eligible securities into and out of their DTC book-entry accounts using a Fast Automated Securities Transfer service (FAST) transfer agent as the distribution point.
DWAC Method: Additional Resource(s)
See DTCC DWAC Overview for more information.
Key Differences at a Glance#
Feature |
DRS |
DWAC |
|---|---|---|
Paperwork |
Paperless (electronic instruction) |
Requires a Medallion‑signature stock power |
Who applies signature? |
Not applicable |
A bank or other financial institution places a Medallion stamp to guarantee the signature |
What is a Medallion signature?
A Medallion signature guarantee is a special stamp used by banks and similar institutions.
It confirms that the person signing a stock power is the legitimate owner, protecting both the shareholder and the transfer agent from fraud.