aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
Earth
  • People

Why Standards And Controls Are Essential To The Future Of Digital Financial Markets

  • aster.cloud
  • January 31, 2024
  • 4 minute read

While the industry is ready to assimilate DLT and digital assets into the financial ecosystem, it first needs help overcoming roadblocks to moving assets across blockchains and integrations to traditional systems.

  • The fever-pitch hype around distributed ledger technology is being replaced by more concrete efforts to integrate this technology into our financial systems.
  • Standards and controls will be essential in ensuring this technology’s integration is managed effectively.
  • Industry leaders DTCC, Clearstream and Euroclear have partnered to publish a white paper on the financial industry’s continued evolution in digital assets.

For a moment back in the mid-2010s, blockchain was being hailed as the future of financial markets. It was labeled generational and transformative due to its decentralized nature and potential applications across various industries, with the ability to solve an ever-growing list of operational challenges.


Partner with aster.cloud
for your next big idea.
Let us know here.



From our partners:

CITI.IO :: Business. Institutions. Society. Global Political Economy.
CYBERPOGO.COM :: For the Arts, Sciences, and Technology.
DADAHACKS.COM :: Parenting For The Rest Of Us.
ZEDISTA.COM :: Entertainment. Sports. Culture. Escape.
TAKUMAKU.COM :: For The Hearth And Home.
ASTER.CLOUD :: From The Cloud And Beyond.
LIWAIWAI.COM :: Intelligence, Inside and Outside.
GLOBALCLOUDPLATFORMS.COM :: For The World's Computing Needs.
FIREGULAMAN.COM :: For The Fire In The Belly Of The Coder.
ASTERCASTER.COM :: Supra Astra. Beyond The Stars.
BARTDAY.COM :: Prosperity For Everyone.

That level of hype was never realistic or sustainable. While there is no doubt that distributed ledger technology (DLT) still holds great promise to reimagine business models and processes, the blockchain journey has reached an inflection point after years of experimentation. Many companies have begun increasing rigor around investment and want to see a pay-off. They’re demanding a real strategy and strong business cases before approving funding for existing and new proofs of concept.

The good news is that, according to a recent study, nearly 40% of financial market participants are currently using some form of DLT or digital assets. These initiatives have begun to show that the technology can improve certain functions, such as securities issuance, trade settlement and data transparency. They have also demonstrated new investment opportunities and operating models as well as ways to enhance efficiencies and liquidity across trade flows and asset classes.

Read More  Data To Watch In 2024, From Digital Jobs To Climate Change And Health

Fragmented innovation is stymying progress

However, too many financial institutions and service providers are exploring how to leverage the technologies individually or as islands of digital innovation. Across the capital markets involved, 74% of DLT projects involved fewer than six participants in 2023. It’s clear that what’s lacking is widespread, industry-wide collaboration. The siloed nature of these initiatives, implemented on different networks with different protocols for connectivity, communication and function, pose challenges to broad adoption and limits the ability to scale any DLT solution.

All of these obstacles can lead to inefficiencies, risks, high transaction costs and limited gains from trading. They also could lead to a new but disconnected puzzle of DLT silos that use multiple technologies and standards. In an ideal world, uniform standards would create an even playing field for new entrants into the financial system, maintain privacy and security and ensuring new systems are compatible with existing ones. Consistent standards would also help bridge the digital divide across jurisdictions that are excluded or have more costly access to cross-border systems.

While the industry is ready to assimilate DLT and digital assets into the financial ecosystem, it first needs help overcoming roadblocks to moving assets across blockchains and integrations to traditional systems. The financial markets work well today because we have developed standards for their design and operation. DTCC has been exploring DLT and digitization for many years, and has successfully tested DLT’s capabilities in several use cases. There is continued momentum in the sector, and DTCC itself has taken a number of steps to advance a robust infrastructure, standards, governance and the right architecture to ensure the safety and soundness of digital markets.

Read More  GitLab Launches All-Remote Leadership Course With Coursera

Recognizing the value of principles and standards to the efficient operation of markets, DTCC has developed an initial set of control principles to help ensure the emerging tokenized securities market is as efficient, incorporates customer protections and is as safe and sound as today’s securities marketplace. These principles aim to reduce risk through defining roles, responsibilities, risks and offsetting controls.

How the financial industry is partnering to move forward

This past September, DTCC partnered with Clearstream and Euroclear to publish a white paper on the industry’s continued evolution in digital assets. The report called out the need for greater industry collaboration to overcome the roadblocks impeding the progress of digital assets and counteracting the efficiencies achieved through DLT. The three firms have pledged to collaborate with the industry to drive scale and harmonize standards across processes, platforms and jurisdictions.

An example of such industry-wide collaboration is a recent experiment conducted by SWIFT in which banks and market infrastructures participated to test the transfer of simulated tokenized assets. The results showed that SWIFT’s existing infrastructure can provide a secure, scalable way for financial institutions to connect to multiple types of blockchains. The industry must continue to work together like this to build the optimal architecture and market structure to incorporate DLT and digital assets into the ecosystem and best meet participants’ needs.

Fostering industry-wide collaboration

DTCC has taken further steps to advance digital assets. Most notable is its recent acquisition of Securrency, a developer of institutional-grade, digital asset infrastructure. This will enable DTCC to continue driving institutional adoption of blockchain technology, enabling real time processing and post-trade settlement, and will position DTCC to connect global liquidity pools.

Read More  Introducing The Professional Cloud Database Engineer Certification

These new capabilities will also be a key enabler to fostering industry-wide collaboration to promote acceptance and adoption of digital assets. By acting as a DLT-agnostic harmonization layer, the platform will connect disparate blockchains and promote liquidity, transparency and security. Financial firms will be able to use it to transform and evolve their operating models and create new digital asset services alone or in collaboration with other market participants. DTCC’s investment in Fnality, a provider of DLT-based wholesale payment systems, will help foster the development of new rails that will be essential for the emergence of a robust digital infrastructure.

As the worlds of TradFi and DeFi converge, DTCC is committed to continuing to partner with the industry through efforts such as these to help introduce the standards and governance needed to drive ecosystem growth while ensuring the highest levels of market safety and stability. The collective impact of these initiatives will help establish a robust digital infrastructure for the industry in a responsible manner to deliver on the compelling opportunities presented by digital assets.

By: Frank La Salla (President, CEO & Director, DTCC)
Originally published at: World Economic Forum


For enquiries, product placements, sponsorships, and collaborations, connect with us at [email protected]. We'd love to hear from you!

Our humans need coffee too! Your support is highly appreciated, thank you!

aster.cloud

Related Topics
  • Davos Agenda
  • Finance
  • Financial Industry
You May Also Like
View Post
  • Featured
  • People

Conclave: How A New Pope Is Chosen

  • April 25, 2025
View Post
  • People
  • Technology

AI is automating our jobs – but values need to change if we are to be liberated by it

  • April 17, 2025
Cloud
View Post
  • Engineering
  • People
  • Public Cloud

Why We Need Both Cloud Engineers And Cloud Architects

  • March 11, 2024
View Post
  • People
  • Technology
  • Work & Jobs

Usher’s New Look Embarks on AI-Focused Collaboration with IBM to Set Students up for Career Success

  • March 7, 2024
goswifties-taylor-swift-travis-kelce-fathers-daughters-super-bowl-bonding
View Post
  • Featured
  • People

How Taylor Swift Unexpectedly Brought Fathers and Daughters Together Through Football

  • February 11, 2024
Cloud
View Post
  • People
  • Technology

Clean Air Is A Valuable Economic Asset. Here Are 4 Steps To Achieve It

  • January 31, 2024
Netherlands
View Post
  • People

How We Can Identify Climate-Vulnerable Neighbourhoods And Protect Inhabitants

  • January 26, 2024
View Post
  • People

Our Lifestyles Are Making Us Sick: How Food-Is-Medicine Can Help

  • January 24, 2024

Stay Connected!
LATEST
  • college-of-cardinals-2025 1
    The Definitive Who’s Who of the 2025 Papal Conclave
    • May 7, 2025
  • conclave-poster-black-smoke 2
    The World Is Revalidating Itself
    • May 6, 2025
  • 3
    Conclave: How A New Pope Is Chosen
    • April 25, 2025
  • Getting things done makes her feel amazing 4
    Nurturing Minds in the Digital Revolution
    • April 25, 2025
  • 5
    AI is automating our jobs – but values need to change if we are to be liberated by it
    • April 17, 2025
  • 6
    Canonical Releases Ubuntu 25.04 Plucky Puffin
    • April 17, 2025
  • 7
    United States Army Enterprise Cloud Management Agency Expands its Oracle Defense Cloud Services
    • April 15, 2025
  • 8
    Tokyo Electron and IBM Renew Collaboration for Advanced Semiconductor Technology
    • April 2, 2025
  • 9
    IBM Accelerates Momentum in the as a Service Space with Growing Portfolio of Tools Simplifying Infrastructure Management
    • March 27, 2025
  • 10
    Tariffs, Trump, and Other Things That Start With T – They’re Not The Problem, It’s How We Use Them
    • March 25, 2025
about
Hello World!

We are aster.cloud. We’re created by programmers for programmers.

Our site aims to provide guides, programming tips, reviews, and interesting materials for tech people and those who want to learn in general.

We would like to hear from you.

If you have any feedback, enquiries, or sponsorship request, kindly reach out to us at:

[email protected]
Most Popular
  • 1
    IBM contributes key open-source projects to Linux Foundation to advance AI community participation
    • March 22, 2025
  • 2
    Co-op mode: New partners driving the future of gaming with AI
    • March 22, 2025
  • 3
    Mitsubishi Motors Canada Launches AI-Powered “Intelligent Companion” to Transform the 2025 Outlander Buying Experience
    • March 10, 2025
  • PiPiPi 4
    The Unexpected Pi-Fect Deals This March 14
    • March 13, 2025
  • Nintendo Switch Deals on Amazon 5
    10 Physical Nintendo Switch Game Deals on MAR10 Day!
    • March 9, 2025
  • /
  • Technology
  • Tools
  • About
  • Contact Us

Input your search keywords and press Enter.