MI forum Magazine: our latest article on the application of distributed ledger technology (DLT)
In principle, distributed ledger technologies and smart contracts could lift levels of automation in post-trade processing to new levels by reducing the amount of information that has to be exchanged to settle a transaction, and potentially the number of parties involved as well. The realisation of these benefits depends on standardisation, and ISO 20022 provides the ideal foundation on which to build a viable transition from current to future technologies.
Distributed ledger technology (DLT) and smart contracts (SC) are rich in potential. They promise a complete transformation of automation in the financial services industry. This is why both DLT and SCs are generating lavish interest at financial institutions and technology providers.
DLT offers a single, consistent and shared view of the state of a business process. In principle, this means the technology can eliminate the need to pass information between market participants or counterparties. Individual firms would simply have access to independent copies of exactly the same data in their own systems.
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