NSD presents its vision of blockchain use in financial markets

Source: NSD

National Settlement Depository (NSD) has issued a white paper with analysis of the use of the blockchain technology in Russia and worldwide.

Practical experience in implementing projects, asset tokenization scenarios, governance and standardization issues were subjects of particular attention. A document entitled “Blockchain in Financial Infrastructure: Risks and Opportunities” is now available on the company’s website in Russian and English.

NSD, being one of popularizers and leaders in using the distributed ledger technology in the CSD sector, has already implemented several industrial solutions: commercial paper issues, a distributed digital depository, and settlements on OTC repo trades.

Artyom Duvanov, Director for Innovations, NSD, said: “Our task is to develop the financial market and offer services and technological solutions tailored to its participants’ needs. In some cases, implementing blockchain allows the simplification of system architecture and provides clients with a cheaper solution as compared to the centralized ones. The emergence of new types of digital assets can also contribute to the quicker implementation of the distributed ledger technology; it lets us provide the market transparency required by regulators and allows the protection of investor rights.”

The process of blockchain implementation in the commodities market was used as one of the examples given in the whitepaper. In particular, the grain market can be considered as a pilot site to assess blockchain capabilities. It is expected that risks and expenses will reduce on this market if the processes of trading, settling and managing the supply chain are integrated into a single ecosystem.

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