DTCC Claims Blockchain Could Support Peak Trade Volumes Of US Equity Market

According to DTCC, blockchain technology could support entire day trade volumes of the entire equity markets in the United States.

Distributed Ledger Technology (DLT)

Depository Trust and Clearing Corporation (DTCC) is a major financial service firm specializing in post-trade advising. There was a recent study by Accenture with support from technology firms Digital Asset and R3. A startup company specializing in blockchain software technology.

The study spanned over nineteen weeks. It showed that DLT could process approximately 6300 transactions per second continuously for five hours. This would be sufficient to meet 115,000,000 daily trades at peak rates in the US market.

“Currently, public blockchains supporting cryptocurrencies operate at single or double-digit per second performance. This until now was the only indication of the potential volume that a private DLT might be able to support,” the DTCC said in its announcement.

The study started with keeping in mind the volume of per second trade in contrast with the total volume per trading day said Jennifer Peve, managing director of DTCC. To make sure that we really demonstrated robustness and completeness, we wanted a target high enough to measure the performance and allow it to maintain that for a continuous period of time.

Distributed Ledger Technology DLT

David Treat, the managing director at Accenture said, This project answered key questions and built serious confidence in blockchain’s ability to drive large-scale transformation.

And also added saying the collaboration with DTCC, Digital Asset, and R3 will push the DLT performance and application in real-world applications to new heights. Clearly study by DTCC and other major institutions shows scalability of DLT or blockchain technology to support the entirety of the US Equity market volume.  Rob Palatnick, Managing Director of IT Architecture at DTCC says,

DTCC has been actively involved in DLT projects for over 3 years. During that time, we have seen technology platforms continue to mature. However, concerns have loomed around the scalability of DLT.

Further explaining their collaborative plans to work and identify new opportunities to use the technology to enhance the post-trade process. If the researchers find a way to actually scale DLT without sacrificing the key safety protocols. Then it would widely benefit the financial industry. However, then again it is a man-sized. Since the collaborative study has given the crypto ecosystem something to look forward to.

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Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.

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