Blockchain’s Role in Settlement: The Good, the Bad, and the Old System That Works
Report Summary
Blockchain’s Role in Settlement: The Good, the Bad, and the Old System That Works
More than US$300 million has gone into supporting DLT efforts in the settlement space in the past two years.
Boston, November 3, 2016 – Disruption in the settlement space is here. Driving this massive change are capital markets firms clamoring for a way to reshuffle how payments take place and how transactions settle. It so happens that distributed ledger technology (DLT) is the fuel triggering that restlessness, but in what part of the settlement equation does blockchain technology make sense? And what is not yet operationally ready?
This report examines competing operational models, such as multilateral netting settlement versus real-time settlement, and interoperability between legacy and DLT networks and among DLT platforms. Based on qualitative Aite Group interviews from June to October 2016 with 20 executives running settlement operations at banks, exchanges, and market infrastructure firms as well as with fintech vendors and regulators, this report informs its audience on problems with the current settlement system that DLT innovation seeks to solve as well as the pros and cons of DLT implementations.
This 47-page Impact Report contains 14 figures and five tables. Clients of Aite Group’s Wealth Management or Institutional Securities & Investments practice can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions ASX, Accenture, Axoni, BNP Paribas, BTL, Bloomberg, Broadridge, CME Group, Chain, Circle, Citibank, Credit Suisse, DTCC, Deloitte, Depository Trust Company, Deutsche Boerse, Digital Asset Holdings, Earthport, Ethereum, Goldman Sachs, IOSCO, Inveshare, Innovate Finance, Ernst & Young, European Securities and Markets Authority, Fedwire Services, JPMorgan Chase, Nasdaq, National Securities Clearing Corporation, Omgeo, Overstock.com, R3 CEV, Ripple, SS&C Technologies, Santander, Speedroute, Standard Chartered Bank, SWIFT, Thomson Financial, Visa, World Economic Forum, World Federation of Exchanges, the U.S. Federal Reserve, and the U.S. Securities and Exchange Commission.