The Depository Trust Company (DTC) is a central securities depository that provides services for the electronic settlement of securities transactions. Established in 1973, it plays a crucial role in the financial markets by holding securities in electronic form, which simplifies the process of buying and selling stocks and bonds. DTC also facilitates the transfer of ownership and the payment of dividends and interest. By acting as a trusted intermediary, it reduces the risks and costs associated with physical securities, making transactions more efficient for investors, brokers, and financial institutions.