26 September 2017
visit www.avoka.com

CSDs look to harness distributed ledger technology

27 September 2016  |  4798 views  |  0 golden egg

A pair of central securities depositories (CSDs) are tackling the threat posed to their industry by the blockchain frenzy head on, forming a partnership to explore how they can make the most of distributed ledger technology.

South Africa's Strate and Russia's NSD have inked a letter of intent on the issue at this year's Sibos, vowing to develop tools that use DLT, with the first use case focused on proxy voting.

Blockchain technology has long been viewed as a threat to CSDs and their role as intermediaries for securities transactions. With this in mind, the partners say that "financial market infrastructures need to embrace the technology and identify opportunities that will add value to their current clients".

They are hoping that their partnership will be the beginning of an industry-wide collaboration, claiming that several other CSDs have expressed interest in joining them.

Strate and NSD will share information regarding standards, regulations and DLT technologies; explore mutually beneficial ideas; and look to make savings through the sharing of technology and development costs.

Eddie Astanin, chairman, executive board, NSD, says: "We believe that the securities settlement and custody industry is one of the promising sectors where we can use new technologies. I think that post-trading may become the starting point of transition of the distributed ledger technology and blockchain from theory to practice."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CLS to use Hyperledger Fabric for new payment netting service

CLS to use Hyperledger Fabric for new payment netting service

27 September 2016  |  9075 views  |  0 comments | 21 tweets | 14 linkedin
R3 banks use Intel distributed ledger technology for bond trading

R3 banks use Intel distributed ledger technology for bond trading

26 September 2016  |  8033 views  |  1 comments | 16 tweets | 10 linkedin
Distributed ledger technology could damage financial market integration - ECB

Distributed ledger technology could damage financial market integration - ECB

26 September 2016  |  9738 views  |  0 comments | 16 tweets | 10 linkedin
DTCC trials distributed ledger tech for repo market

DTCC trials distributed ledger tech for repo market

29 March 2016  |  5656 views  |  0 comments | 10 tweets | 7 linkedin
DTCC calls for industry coordination on distributed ledger tech

DTCC calls for industry coordination on distributed ledger tech

25 January 2016  |  7671 views  |  0 comments | 10 tweets | 13 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.sibos.comvisit www.temenos.com

Top topics

Most viewed Most shared
AXA launches blockchain to cover late flight compensationAXA launches blockchain to cover late flig...
12260 views comments | 16 tweets | 30 linkedin
European Commission makes fintech a priority in supervisory shakeupEuropean Commission makes fintech a priori...
8858 views comments | 34 tweets | 46 linkedin
hands typing furiouslyBlockchain is a new way of thinking?
7573 views 2 | 10 tweets | 1 linkedin
German central bank flags DLT weaknessesGerman central bank flags DLT weaknesses
7309 views comments | 17 tweets | 19 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job