DTCC to use blockchain on $11 trillion derivatives market

$11 trillion in derivatives are getting closer to the blockchain with the help of DTCC 
21 October 2017   1803

DTCC, the company that today settles the lion's share of U.S. securities, is moving forward blockchain.

The company reports that it has completed an early version of a blockchain that could one day support the trade of $11 trillion-worth of credit derivatives, as detailed by in an exclusive interview with coindesk.com. 

At first, the goal of the project was to upgrade the infrastructure underpinning the DTCC's centralized Trade Information Warehouse (TIW) for over-the-counter derivatives, reducing the time it takes to clear derivatives trades. In order to do that, the company teamed up with IBM, R3 and Axoni. Now, the partners are turning their attention to testing it, and preparing it for migration of the TIW data in a compliant way.

"The exciting thing is that there's continued comfort in the progress of the overall application and environment. There are always challenges, but we call it the 'noise of progress'."
 

Rob Palatnick
DTCC's chief technology architect

The man also reveals that Axo's AxCore protocol was originally derived from the public Ethereum blockchain, and that the DTCC's system uses the same Solidity smart contract language that powers its applications.

Still, AxCore has been modified to include a modular consensus mechanism that lets it tailor services to the specific needs of the DTCC, as well as submit real-time reports to both regulators and other counterparties. Unlike Ethereum, the DTCC implementation of AxCore does not include a token.

As reported, currently, the DTCC is working with regulators to align Axoni's built-in reporting database with regulatory requirements. According to Palatnick, the reports have to be as good as existing ones, but will be available on a continual basis as a result of the smart contract functionality. On top of that, the company is working with R3 and its network of over 100 global financial institution members to learn from standards-making bodies how to create "standards around what data should look like on a distributed ledger".

Following the launch, Axoni is to open-source the Axcore protocol.

Most Crypto-Optimists Live in Norway, Bitflyer Study

According to bitFlyer's poll on future of crypto, europeans believes cryptocurrency has future
24 April 2019   101

Most Europeans believe that in ten years digital currencies will continue to be in demand, but they do not have the same confidence about Bitcoin. This is reported by Cryptonews, citing a study of the bitFlyer.

10 thousand people from ten European countries took part in the online survey. Of these, 63% believe in a “bright future” cryptocurrency. However, not all Europeans are confident in the future of Bitcoin - only 55% believe that the first cryptocurrency will exist in ten years.

It is also noteworthy that, despite the fall in prices of most cryptocurrencies that lasted for almost a year, the majority of respondents positively assessed the prospects for the development of the market.

Most of the “crypto-optimists” turned out to live in Norway - 73% of the inhabitants of this Scandinavian country are convinced that a decade later, digital currencies will still be in society. This is followed by Italy (68%), the Netherlands and Poland close the top four (67% each).

The percentage of consumers who believe cryptocurrencies will still exist in 10 years’ time
The percentage of consumers who believe cryptocurrencies will still exist in 10 years’ time

But the exact form of cryptocurrency will exist, almost no one knows. Only 8% believe that they will become money, and 7% - a tool for investment or a means of preserving value.

The fact that Bitcoin is not generating as much support as other cryptocurrencies is in part a symptom of the market’s volatility, but is also a direct impact of the constant media attention that is associated to its volatility.
 

Andy Bryant

COO, bitFlyer Europe

He also added that the study demonstrated how much remains to be done to increase public awareness of the benefits and opportunities of cryptocurrencies.