Dear ,
The capital markets industry is wide and deep. Even in private markets as a subsegment, delivering real value by leveraging technology requires understanding a broad set of specific elements along the value chain and thinking deeply about how it can be done better.
Highlighting one of these elements that kept us busy recently: Delivery-versus-Payment (DvP), the process of settling a securities trade by simultaneous exchange of the ownership of rights (ie, the asset) and the stipulated payment amount between the trade partie; in more simple terms: I deliver the goods, you deliver the money, we exchange the two simultaneously.
We are working on moving our semi-automated DvP mechanism to a fully automated one via using a stablecoin on CrossPool. In the conventional/ traditional world of securities post-trade scene, DvP has reached the maturity and clarity of communication protocols, payment mechanism as well as risks management. Any digital platform is confronted with the question "How do we achieve DvP and eliminate settlement risk in the new digital world?". From a helicopter view, the topics the forerunners are tackling include fluidity of fiat currency and cryptocurrency, settlement finality, interledger interoperability and investor protection. And there has been interesting progress, for example, late 2018, MAS and SGX completed a pilot project with a consortium of financial institutions and technology partners including R3 on DvP:
Project Ubin: Central Bank Digital Money using Distributed Ledger Technology.
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