A financial market utility is an entity that provides essential infrastructure for financial markets to function reliably. These utilities include payment systems, central securities depositories, central counterparties, and trade repositories. They reduce risk, enhance efficiency, and ensure the orderly settlement of financial transactions. Their operational integrity is critical for maintaining overall financial stability and market confidence.
Context
The role of financial market utilities is gaining increased attention in crypto news, particularly as discussions arise about how digital asset systems might integrate with or disrupt existing financial infrastructure. Debates often focus on whether certain blockchain protocols or stablecoin issuers should be classified and regulated as such utilities. Regulators worldwide are examining the implications of decentralized finance on these traditional structures.
Deploying a permissioned Ethereum Layer-2 enables SWIFT to establish a 24/7, low-latency cross-border payment rail, fundamentally optimizing interbank liquidity and settlement.
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