Securities Servicing refers to the range of administrative and operational functions that support the lifecycle of securities, from issuance to settlement and custody. This includes activities such as record-keeping, corporate actions processing, income collection, and proxy voting. The application of blockchain technology aims to streamline these processes, enhancing efficiency and reducing costs across the financial ecosystem.
Context
The modernization of securities servicing through distributed ledger technology is a key area of innovation in traditional finance. News often reports on pilot projects by custodians and clearinghouses exploring blockchain for faster settlement cycles, improved data management, and reduced counterparty risk. The ongoing discussion addresses the regulatory hurdles, technological interoperability challenges, and the potential for significant cost reductions in the global securities market.
Integrating DLT into the custody stack enables immediate collateral mobility, shifting the operating model to continuous, real-time asset management for the $57.8 trillion portfolio.
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