Crypto optimism11/28/2023 Implementing smart contracts to automate settlement and corporate action processes for stock splits and mergers can lower operational costs by $15-20 billion. Leveraging DLT in securities markets can create savings worth more than $100 billion annually, freeing up collateral outstanding in segments like derivatives and securities lending. It democratizes access to capital and helps issuers and other market participants unlock new opportunities – from securities issuance to settlement, trading and servicing. Let’s address the main obstacles hindering the true universal mass adoption of DLT in financial services.ĭLT is a backbone of blockchain that enables the recording, sharing and synchronization of data across multiple locations without the need for a central authority.ĭLT is a catalyst for innovation. The question remains – how can this interest be translated into tangible action? However, certain challenges prevail among traditional finance institutions that want to implement blockchain solutions. In fact, 93% of institutional investors believe in the long-term value of blockchain technology for finance, and 74% intend to increase their allocations to the digital asset sector in the year ahead.Īs the evolution of digital asset infrastructure unfolds, we see increased interest from institutional investors. Those closely monitoring the financial landscape today witness rising opportunities for institutional investors boosting blockchain adoption. Nonetheless, it facilitated the historical transition from blind confidence to educated optimism surrounding cutting-edge financial technologies, particularly DLT (distributed-ledger technology). The finance and fintech news of late 2022 and early 2023 may have created uncertainty for some financial institutions and digital assets skeptics.
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