A bitcoin entrepreneur and a trading veteran have partnered on a blockchain project that aims to streamline the way assets are exchanged.
SETL will use its blockchain, which is "akin to proof-of-stake", to let market participants cut out the web of intermediaries in the post-trade system, saving them time and money.
The current clearing and settlement process requires firms to operate across many different ledgers at a total cost of $65–80bn annually.
The list of Wall Street companies exploring how blockchain technologies can disrupt legacy infrastructure is growing longer by the day. However, reservations remain about bitcoin's processing time and pseudonymous nature in a heavily regulated, risk-averse industry.
Unlike bitcoin's blockchain, SETL operates using a 'permissioned' ledger that requires all participants to reveal their full identity to pass due diligence.
The platform is expected to reach speeds of 100,000 transactions per second, though the company said only 5,000 have been achieved in tests so far.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.