SWIFT and seven Central Securities Depositories have signed an MOU to show how distributed ledger technology would be used in voting and proxy-voting and other applications.
It will also show how ISO 20022 can support distributed ledger technology. Most importantly, it will help develop standards, which is the most pressing challenge for emerging technologies such as this one.
CEO of SIX Securities Services and Chairman, International Securities Services Association (ISSA), said,
“The promise of the technology on paper is great, but it is currently missing a key component around standardization. There is clear value in re-using established business definitions and facilitating interoperability amongst DLT implementations. In which this project will demonstrate”.
The project will also help eliminate the cumbersome manual processes in multi-party contracts, which has high costs and risks. Abu Dhabi Securities Exchange will open dialogue with the aim of enhancing speed and security of capital market transactions, said CEO Rashed Abdul Karim ALBalooshi.
The seven are Abu Dhabi Securities Exchange, Caja de Valores, Depósito Central de Valores, Nasdaq Market Technology AB, National Settlement Depository, SIX Securities Services and Strate Ltd with more expecting to join in future.
The MOU will allow collaboration in research and development. However, in addition to identifying, defining and developing additional use cases for distributed ledger technology. It will also help to determine the role of financial market infrastructure providers in CSD environments.
The collaboration will also help develop standards for the use of the technology among the seven and other joining CSDs and financial institutions. It will also help promote adoption of the to-be-developed rules and principles to regulators and other parties.
Various parties welcomed the move as timely one.
Abu Dhabi Securities Exchange will open dialogue with the aim of enhancing speed and security of capital market transactions, said CEO Rashed Abdul Karim ALBalooshi.
Chairman of National Settlement Depository Eddie Astanin said the blockchain, smart contracts, and other FinTech solutions might upgrade. However with the quality of services provided to clients. He said the collaboration would contribute to industry development.
Thomas Zeeb, CEO, SIX Securities Services and Chairman ISSA said standards would be an excellent foundation for existing businesses. In regards with the business content and approach.