A report by the Global Financial Markets Association (GFMA) has claimed that implementing distributed ledger technology (DLT) in traditional markets could save around $100 billion annually. The GFMA, along with consulting firm Boston Consulting Group, has asked regulators and the financial industry to seriously consider the benefits of DLT. The report highlights that using DLT in collateral processes in derivatives and lending could result in $100 billion saved, whilst automating clearing and settlements with smart contracts could reduce overheads by $20 billion each year. DLT implementation is seen to have the most significant impact in clearing and settlements systems, followed closely by custody and asset servicing. However, primary and secondary trading markets could also significantly benefit with better risk mitigation and deeper liquidity through tokenisation. The European securities clearing firm Euroclear announced its intention to integrate DLT into its settlements process in March. In November 2018, however, the Australian Securities Exchange abandoned its plans to use DLT in its clearing and settlements system.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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