A recent report by the Global Financial Markets Association (GFMA) indicates this traditional Markets can save more of $100 billion each year By implementing a distributed ledger technology (DLT).
Published report on May 16, urging the organizers and financial Institutions to consider the advantages of this technology seriously.
DLT, umbrella term systems that include record transactions and digital informationincludes blockchain as a specific type of Distributed ledger.
Distributed Ledger technology holds promise for Leadership growth innovation. This potential should It cannot be ignored or blocked where regulatory control and flexibility measures already Out.”
Adam Farkas, CEO at GFMA
the report highlights potential savings of $100 billion by leveraging distributed ledgers to streamline escrow processes in Derivatives and lending markets. In addition to, using Smart contracts can be used to automate clearing and settlement processes reduce 20 billion dollars annually.
The most important effect of DLT adoption is expected on Clearing and settlement systems, closely followed by custody and asset service. While the primary and secondary markets trading may be experience a more Modest transformation, coding entry in These markets can support risk Mitigation and enhancement of liquidity to new heights.
DLT adoption is gaining traction among TradeFi players
The study reflects a growing wave of between enthusiasm traditional finance players Eager to integrate DLT into their operational frameworks.
Of note is Euroclear, a specialized premium company based in Brussels in Clearing and settlement, is on the edge of Launch of a pioneering DLT bond trading platform.
Moreover, the European Central Bank is actively exploring ways to enhance interaction between it financial Settlement and decentralization systems technology.
However, DLT integration is on the list financial Fair make up systems share of challenges and the room for revision.
in a noticeable setback last November, the Australian Stock Exchange had to give up plans To update 25-yearOld clearing and settlement system with DLT, resulting in big financial setback of $170 million.
GFMA report arrives on heels of Prophecy by Citi Investment bankwhich you can estimate global market for Blockchain-based tokens assets It could rise to $5 trillion by 2030.