Blockchain, sometimes referred to as Internet 3.0 or the Internet of Value, follows a strong growth trajectory and has quickly become a seamless part of the global financial system and economy. The blockchain technology platform is a distributed ledger technology (DLT) system, which has triggered a fundamental challenge to the nature of money, transforming current business processes. It is one of the most disruptive technologies available at present, designed to simplify the value chains around trading, payment and market infrastructure. If fully adopted, blockchain will create a more efficient, more transparent and more secure marketplace whilst reducing transaction processing costs.
Whilst the potential is huge, so too is the uncertainty. The key to turning blockchain’s potential into reality is a collective effort amongst industry participants to learn, share, cooperate and see themselves as part of the blockchain network, as opposed to individual firms.
This whitepaper focuses on the applications of blockchain technology on various aspects of the capital markets. It should be read in conjunction with ‘Blockchain Technologies in Financial Markets’ and builds upon the technical concepts covered there.
Contents:
Financial Applications of Distributed-Ledger Technology
- The OTC derivatives Industry
- Broadly Syndicated Loans (BSL)
Risk Management After The Global Financial Crisis of 2008
Blockchain-Enabled Risk Management Framework
- Managing Settlement & Counterparty Risk on the Blockchain
- Managing Collateral on the Blockchain
- Managing Systemic Risk on the Blockchain
Case Study: ISDA Common Domain Model
- Block Hashing Algorithm
- Example: Axoni’s Implementation of ISDA Common Domain Model
