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Deposit/Withdrawal At Custodian - DWAC

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Dictionary Says

Definition of 'Deposit/Withdrawal At Custodian - DWAC'

A method of electronically transferring new shares or paper share certificates from the Depository Trust Company (DTC), which acts as a clearinghouse for settling trades in corporate and municipal securities. The Deposit/Withdrawal at Custodian (DWAC) is one of two ways of transferring between broker/dealers and the DTC, the other being the Direct Registry System (DRS) method. Both enable investors to hold securities in registered form on the books of the transfer agent, rather than in physical form. DRS is different from DWAC in that shares in DRS have already been issued and are held electronically on the books of the transfer agent.
Investopedia Says

Investopedia explains 'Deposit/Withdrawal At Custodian - DWAC'

The DWAC and DRS processes offer a number of benefits to investors. Being electronic systems, they greatly reduce the amount of time required to transfer and deliver securities, thereby significantly accelerating the settlement process for investors. They also eliminate the risk of losing physical certificates, as well as the higher transportation and handling costs associated with such certificates.

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