Euroclear, a leading name in traditional finance securities trading, could possibly launch a distributed ledger technology (DLT) based securities platform this year. This was shared by Euroclear staff at an event in Brussels. Bart Garré, a Legal Counsel for the giant, informed that the Euroclear team is working on the final stages of the minimum viable product (MVP), and may release it very soon.

The new DLT platform shall be used for digital bond issuance and settlement. It would ensure a seamless connection to the existing bond market, to avoid any compromise in liquidity. It is being speculated that the European Union’s DLT pilot regime has provided the spark of motivation. The regulatory relaxations in securities trading with crypto-style technology came to effect just last week.

To make the trading environment functional under existing legal assumptions, certain adjustments in the financial collateral law have to be made. These include figuring out what constitutes an account or a message for fund transfer. Also, property law has to be kept into consideration for the purpose of transferring ownership.

Garré ended the conversation by emphasizing his team’s goal of providing a supportive environment for blockchain technology to flourish. He clearly stated that without the proper measures in place, a true decentralized world would be impossible. This could potentially be a game-changer in the financial industry. Everyone will be looking forward to the release of Euroclear’s DLT platform and its potential impacts on the existing system.

Euroclear is looking to revolutionize the securities trading industry with the launch of its DLT based platform for digital bond issuance and settlement. It was disclosed by a Euroclear staff member at an event in Brussels. The project builds upon the required legislative changes to make it functional, such as a minor alteration in the financial collateral law. This aims to transfer a clearer ownership along with a message for fund transfer.

The team is expecting to release the MVP soon, possibly this year. This would create a connection with the current bond market, without compromising on liquidity. The European Union’s DLT pilot regime has further encouraged the planning, as the crypto-style technology for securities trading has become acceptable.

Garré stated that their primary objective is to provide a nurturing environment for blockchain technologies and DLTs, to have a better understanding of the true decentralized world. With that being said, everyone will be looking forward to the launch of the platform and its potential implications in the financial industry.



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