International consortium analyzes the impact of crypto assets on the current services of the financial system

The Depósito Central de Valores (DCV) has had an active participation in the international consortium, which is formed by other securities depositories and suppliers of the industry, whose joint work looks to seek alternatives for the implementation of Blockchain - DLT technology (Distributed Ledger Technology), to improve and optimize the processes in the financial industry.

The first publications of the working group, addressed voting at shareholders meetings (see here to review this document), and then went on to analyze the impact and changes that will be generated by the so-called “crypto assets” (which are based on blockchain technology) in the current services provided by the financial system.

Claudio Calderón, Head of R&D Projects and who has led this work within DCV, comments that at some point not far away, financial instruments will be created in cryptographic environments, so it is important to study this new technology from now on. Therefore, the initial work focused on identifying the roles required for these new crypto assets

The first phase of this work was published in October 2018 (see here to review this document). Today, the distributed ledger technology (DLT) working group, under the guidance of the International Securities Services Association - ISSA, led by Glen Fernández (Euroclear) and Urs Sauer (SIX), has issued a new document to guide best practices and provide recommendations regarding the issuance, settlement, custody and services associated with corporate events, such as the payment of dividends or debt instruments maturities. While focusing on interoperability, the document states that the securities industry can fully benefit from DLT-based solutions. Each chapter addresses the fundamentals of the opportunity of using it, the challenges for delivering it, as well as possible solutions to the problems in a way that is easily accessible for interested parties.

The executive points out that this work was fundamental for the project that DCV is currently carrying out with the Central Bank of Chile as they are applying this new technology to what is being issued by the latter institution. “It allowed us to know the experience of other institutions and see trends,” he concluded.

To review the document (Spanish only)

News Center