DTCC and Financial Markets Infrastructure (FMI) partners have come together to design a “blueprint” for the global digital assets ecosystem. In pushing for the transition to the desired future, partners point to a $16 trillion opportunity contingent on removing critics.
DTCC and its partners envision a $16 trillion opportunity within the global digital assets ecosystem
DTCC, Euroclear and Clearstream have collaborated with Boston Consulting Group towards a contemporary digital asset ecosystem. The companies envision a $16 trillion opportunity in the global digital asset space.
In an action plan titled “Advancing the Age of Digital Assets,” the companies jointly present a blueprint for removing obstacles. Among the detractors cited in the industry’s growth path are “years of smaller-scale deployments,” according to the report, which noted “subsets and isolated pools of liquidity of instruments on private distributed ledgers.” [Distributed Ledger Technologies]”.
To this end, DTCC and the team will review approximately 100 regulations and technical reports from diverse ecosystems within the industry. They also plan to conduct more than 20 interviews with various market participants and technology vendors.
Innovation and adoption remain fragmented despite clear opportunities, DTCC
There are only a few DLT protocols
Record large consolidated trading volumes. This, according to the report, represents an obstacle to the future of digital assets due to the fragmented liquidity system and token stagnation.
The result is that digital assets are more expensive to maintain than their traditional alternatives in the short term. The scheme therefore highlights the medium and long-term opportunities that already exist. They are legal clarity, regulatory compliance, flexibility and security, customer asset protection, connectivity and interoperability, and operational scalability.
Quoting Managing Director and Global Head of Digital Assets at DTCC, Nadine Shukr, “While many companies see potential in blockchain technology, including reduced risk and lower costs, the financial services industry still needs to focus on distributed ledger technology.”
Shaker therefore calls for “cooperation across a broad cross-section of companies to build the infrastructure, standards, controls and governance to support digital markets.” Clearstream Managing Director and Head of Exporter Services and New Digital Markets, Jens Hachmeister, supported this call.
DTCC Digital Assets mobilizes the power of blockchain technology to build a global, fluid and interconnected ecosystem for digital assets. Its key capabilities leverage blockchain technology to tokenize any asset, automate compliance, support market requirements, and launch digital asset markets.
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