A group of central securities depositories (CSDs) is working with stock exchange operator Deutsche Börse on a new blockchain-based solution aimed to improve collateral management.
CSDs from Canada, Luxembourg, Norway and South Africa – all members of the Liquidity Alliance – are working with the stock exchange firm to create what they have dubbed the “LA Ledger”. The initiative is currently in the prototyping phase, using the code underlying the Hyperledger project as its basis.
The firms involved are looking to seek approval for the solution from regulators later this year, according to statements – a process that could begin as early as the second quarter.
Glenn Goucher, president and chief clearing officer for the Canadian Depository for Securities Limited, said in a statement:
Additionally, other CSDs, including those from Russia and China, have moved in the past year to test applications of the tech, in both individual and collaborative settings.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.