Security services will be substantially disrupted by distributed ledger technology
Blockchain technology will bring either doom or opportunity to securities services firms, according to European banking giant BNP Paribas. Writing in the bank's magazine, Quintessence, research analyst Johann Palychata said the bank forecasts two scenarios: "total disruption" or new, improved services for the institutions who handle the world's trades. He added: "In its purest form, a distributed blockchain system allows all market participants direct access to the DSD (Decentralised Securities Depositary), to the exchange and to the post-trade infrastructure (clearing & settlement). If this setup develops then existing industry players might be redundant." Post-trade One startup banking on the "total disruption" of the 'post-trade' ecosystem – where ownership is transferred from buyer to seller after a trade – is Digital Asset Holdings, which uses distributed ledger technologies to settle digitised and non-digitised assets.