Yesterday the European Central Bank published a report on the use of DLT in post-trade processes. It concludes that there’s not yet a clear business case for using DLT / blockchain in post-trade. One of the key contexts is an interest in completing a European capital markets union.
A key part of the report examines regulatory, governance and interoperability considerations. One of the biggest issues it highlights is the potential for fragmentation due to a lack of both standards and interoperability between different security token and post-trade solutions.
There are probably hundreds of DLT solutions looking at tokenized securities, many of which are not purely post-trade but cover the entire life cycle, including issuance, trading and post-trade. However, the emphasis of the ECB paper is on post-trade.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
