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Likewise , Broadridge ’ s DLR used Daml from the outset . “ This is kind of the watershed moment here , not to be too dramatic , but what the panellists are all talking about is transformation . It is the beginning of the next level for the generation of these types of services ,” said Mathieson . “ The technologies that are supporting the businesses Broadridge and EquiLend are building and creating allows you to gain the benefits of that agreed mutualised workflow that the smart contract driven distributed workflow brings . Notice I didn ' t say ledger , but distributed workflow - but to do it in a way that preserves privacy .”
The other commonality which united all the participants during the roundtable discussion was their involvement in Canton Network – the industry ’ s first privacy-enabled interoperable blockchain network designed for institutional assets . By creating a ‘ network of networks ’, Canton allows previously siloed systems in financial markets to interoperate with the appropriate governance , privacy , permissioning and controls required for highly regulated industries . “ The trend for the next two years from my perspective is really going to be scaling and building networks , and interoperability is going to be crucial to that ,” opined Amlani . The Canton Network provides a decentralised infrastructure that connects independent applications built with Daml , Digital Asset ’ s smart-contract language . The result of the initiative could create opportunities for financial institutions to offer innovative new products to their clients while enhancing their efficiency and risk management . “ For us at Digital Asset , privacy , scalability , extensibility and composability are very important technology elements to consider when you ' re thinking about creating applications or the actual products or services that are going to be delivered to your existing and potentially new clients ,” said Mathieson . “ We have a strong sense of responsibility to provide technology that allows for interoperability while preserving privacy , scalability , extensibility and composability . “ We are not compromising on the principles that would have given rise to some of these incredibly new and innovative businesses , products , and services , but doing it in a way that preserves the necessary levels of control and governance in the form of a network . We are bringing new opportunities to institutions , such as the three represented in this discussion and others , to create new forms of digital and distributed workflows and services on a distributed ledger with nodes , creating a seamless and interconnected environment for themselves and their participants .
Getting off the collision course and avoiding silos DeGiglio added : “ We ' re all on a bit of a collision course with all the use cases to create yet more fragmented ecosystems that don ' t interoperate . Where the industry needs to spend a lot of its time is on cross-chain or cross-fabric interoperability . Luckily everybody in this call are founding members of the Canton Network , and if you ' re part of the Canton Network , you get some of that interoperability and network effect essentially for free out-of-the-box . Broadridge ’ s Chiappetta agreed . “ We ' re very careful not to create a new set of silos with our specific use cases . Everyone has their own starting point . Still , if you ' re looking aspirationally , most of the folks from different blockchains or ledgers that we ' ve spoken to all have similar road maps ,” he continued . “ That interoperability is going to be key for a client that ' s on EquiLend , for example , crossing over into DLR and so forth with some of the other platforms we ' ve had conversations with . We ' ll get there at some stage .” The establishment of the Canton Network marked a landmark moment in the application of blockchain in the financial services industry , including securities finance . The Canton Network will aim to enable financial institutions to experience a safer and reconciliation-free environment where assets , data , and cash can synchronise freely across applications . “ Some of the DLT fabrics that are out there make this problem easy to solve as they abstract some of that privacy through things like cryptography , digital signatures and audit trails ,” added DeGiglio . “ It allows folks that are building the apps like us to focus more on the business logic and it just solves the privacy for you underneath . “ One of the reasons in our RFP that we ended up choosing Digital Asset , Daml and Canton is because I think they do a good job with that .”
The pace of change In his role at Goldman Sachs , Amlani gets to view the broader digital asset space in the context of application within the financial markets . Therefore , he gave great insight into the opportunities the securities finance space has when it comes to DLT , digital assets and – within that – tokenisation . “ Actually representing assets as tokens on a blockchain and then moving them around , I think that , specific to securities finance , really reduces fragmentation . “ Right now , we have assets moving across multiple different clearing locations . All those movements have risks associated with them . Having that single set of rails on which you can move a token can significantly reduce the inefficiency you get from fragmentation . “ It also brings with it new functionality like precision , the ability to trade to the nearest minute , and the ability to trade intraday . I know a lot of people say 24 / 7 , but I actually think it ' s a couple of hours on each side , which is just super valuable when you ' re trading across geographies .” His other highlighted opportunity was around a single source of truth . “ It ' s extremely underrated because it ' s probably easier to implement compared to tokenisation . Data on chain can have huge benefits when you think about not only the regulatory reporting , but the ability to risk manage things on a T0 or perfect world and intraday basis , and know your real-time risk positions and not have failed trades where you are having to source from other avenues to cover yourself .” He also noted the comparative pace of change compared with the rest of the industry . “ With pace , we are fundamentally rewiring how things have worked , as we were talking about so it takes a while to get there , but I think there really is an opportunity here to scale quickly because you have a number of players really pushing the needle quite quickly .’ Amlani added .
Back to the start After much time setting the scene and discussing innovation , interoperability and the push and pull factors leading the industry to transformation , the final question the speakers answered entailed
24 Global Custodian Sibos Special 2023