The use of distributed ledger technology by the financial infrastructure makes it possible to simplify processes, as compared to the use of multiple centralised solutions, according to the National Settlement Depository (NSD).
In a new whitepaper, NSD explained how blockchain technologies simplify processes and improve the transparency of the financial market for the regulator.
The whitepaper also described how the use of distributed ledger technology can create an enabling environment for the application of flexible settlement models directly on blockchain.
NSD further cited the potential ways to successfully implement blockchain in the sector in the near term, concentrating on how the depository has previously used blockchain for implementing new projects, asset tokenisation scenarios, governance and standardisation, in particular.
The depository stated transferring the entire set of business processes associated with a certain asset or service type to blockchain, adding tokenised funds to the blockchain perimeter, and adapting the financial infrastructure to transactions in new asset types using distributed ledger technology “seem to be the most cost-efficient option” both in Russia and worldwide.
Artyom Duvanov, director for innovations at NSD, said: “Our task is to develop the financial market and offer services and technological solutions tailored to its participants’ needs. In some cases, implementing blockchain allows the simplification of system architecture and provides clients with a cheaper solution as compared to the centralised ones.”
He added: “The emergence of new types of digital assets can also contribute to the quicker implementation of the distributed ledger technology; it lets us provide the market transparency required by regulators and allows the protection of investor rights.”
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