According to ISSA survey conducted by ValueExchange with support from Accenture, Broadridge and VMWare, over 30% of the industry uses DLT in live production.
The ISSA (International Securities Service Association) has released the results of its third annual survey on the use of DLT (Distributed Ledger Technology) in the financial markets.
Conducted by ValueExchange with support from Accenture, Broadridge and VMWare, the survey finds a “major uptick” in DLT adoption, with over 30 percent of the industry now using the technology in live production, a four-fold increase from 2021.
The bounce appears to be driven heavily by organizations implementing capabilities to support cryptocurrencies and tokenized bonds, the ISSA says.
The survey highlights a shift from experimentation with DLT to a focus on commercialization in 2022, with 53 percent of projects now slated for live commercial use. Enterprises are also encountering less organizational resistance to deploying DLT.
According to ISSA, most DLT projects are currently focused on facilitating new product launches and internal efficiencies, rather than creating market-wide efficiencies.
Additionally, while the focus is still on crypto, market participants are focusing and launching solutions to tokenize a growing number of asset classes in the near term – with securitized assets, private equity and listed equities all set to increase significantly in usage and importance.
“DLT is clearly starting to deliver real results for the industry today, and the tokenization of heavily paper-based assets – such as securitized assets, mutual funds and personal debt – is clearly delivering positive returns in 2022,” said Colin Parry, CEO of ISSA. “While the performance of securities that have already been dematerialized may underperform, contrary to expectations, the prospects for growing DLT-driven efficiencies in 2023 are clearly positive.”
Barnaby Nelson, CEO of ValueExchange, said that the value of DLT is increasing and that its use is expanding from the traditional, perceived benefits of enabling atomic billing and smart contracts to also include real-time data processing and synchronization.
“With regulatory constraints still holding back 26 percent of DLT projects, simply using blockchain as a real-time ledger offers companies the opportunity for significant and immediate efficiencies — particularly in areas like OTC derivatives.”
The results of the research will be published here.
According to ISSA survey conducted by ValueExchange with support from Accenture, Broadridge and VMWare, over 30% of the industry uses DLT in live production.
The ISSA (International Securities Service Association) has released the results of its third annual survey on the use of DLT (Distributed Ledger Technology) in the financial markets.
Conducted by ValueExchange with support from Accenture, Broadridge and VMWare, the survey finds a “major uptick” in DLT adoption, with over 30 percent of the industry now using the technology in live production, a four-fold increase from 2021.
The bounce appears to be driven heavily by organizations implementing capabilities to support cryptocurrencies and tokenized bonds, the ISSA says.
The survey highlights a shift from experimentation with DLT to a focus on commercialization in 2022, with 53 percent of projects now slated for live commercial use. Enterprises are also encountering less organizational resistance to deploying DLT.
According to ISSA, most DLT projects are currently focused on facilitating new product launches and internal efficiencies, rather than creating market-wide efficiencies.
Additionally, while the focus is still on crypto, market participants are focusing and launching solutions to tokenize a growing number of asset classes in the near term – with securitized assets, private equity and listed equities all set to increase significantly in usage and importance.
“DLT is clearly starting to deliver real results for the industry today, and the tokenization of heavily paper-based assets – such as securitized assets, mutual funds and personal debt – is clearly delivering positive returns in 2022,” said Colin Parry, CEO of ISSA. “While the performance of securities that have already been dematerialized may underperform, contrary to expectations, the prospects for growing DLT-driven efficiencies in 2023 are clearly positive.”
Barnaby Nelson, CEO of ValueExchange, said that the value of DLT is increasing and that its use is expanding from the traditional, perceived benefits of enabling atomic billing and smart contracts to also include real-time data processing and synchronization.
“With regulatory constraints still holding back 26 percent of DLT projects, simply using blockchain as a real-time ledger offers companies the opportunity for significant and immediate efficiencies — particularly in areas like OTC derivatives.”
The results of the research will be published here.
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