DTCC and FMI to Overhaul Regulations with $16 Trillion Digital Asset Vision Plan
DTCC and Financial Market Infrastructure (FMI) partners have come together to design a “blueprint” for the global digital asset ecosystem. Partners pushing for the transition to the desired future cite a $16 trillion opportunity contingent on eliminating detractors.
DTCC and partners envision a $16 trillion opportunity in the global digital asset ecosystem
DTCC, Euroclear and Clearstream have joined hands with Boston Consulting Group for a contemporary digital asset ecosystem. Firms predict a $16 trillion opportunity in the global digital asset space.
In the work plan titled We Will Advance the Age of Digital Assets TogetherCompanies offer a plan to eliminate obstacles. According to the report, setbacks to the sector’s growth include “years of smaller-scale deployments” involving “sub-scale, isolated instrument liquidity pools in private DLTs.” [Distributed Ledger Technologies].”
To this end, DTCC and its team will review nearly 100 regulations and whitepapers from various ecosystems in the industry. They also plan to hold more than 20 meetings with different market participants and technology suppliers.
Innovation and Adoption Remain Fragmented Despite Open Opportunities, DTCC
There are only a handful of DLT protocols that record significant consolidated transaction volumes. According to the report, this poses an obstacle to the future of digital assets due to the fragmented liquidity system and stagnation in tokenization.
The result is that digital assets are more costly to maintain in the short term than their traditional alternatives. Therefore, the plan highlights the medium and long-term opportunities that currently exist. These are legal openness, regulatory compliance, flexibility and security, customer asset protection, connectivity and interoperability, and operational scalability.
Referring to Nadine Chakar, Managing Director and Global Head of Digital Assets at DTCC, “While many firms see potential in blockchain technology, including less risk and lower costs, the financial services industry still needs to move toward distributed ledger technology.”
That’s why Chakar calls for “collaboration across a wide range of firms to create the infrastructure, standards, controls and governance to support digital markets.” Clearstream Managing Director and Head of Export Services and New Digital Markets Jens Hachmeister supported the call.
DTCC Digital Assets harnesses the power of blockchain technology to create a global, liquid and interconnected ecosystem for digital assets. Its core capabilities leverage blockchain to tokenize any asset, automate compliance, support market requirements, and launch digital asset markets.
So read: LINK Price Increases 7% as DTCC and Chainlink Complete Pilot Program
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Lockridge transitioned from a career in Molecular and Cell Biology to pursue his interest in the chaos of crypto and financial markets. He is a cryptocurrency journalist and market analyst with over 3,000 articles to his name. He enjoys diving deep into the crypto space and gaining significant knowledge and experience for himself by conducting on-chain analysis, breaking down market triggers, and publishing Op-Ed pieces. In addition to ATZCrypto, Blockster, and InsideBitcoins, Lockridge’s work can also be found on FXStreet.com. Outside of work, you can find Lockridge watching movies or horseback riding.
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