Shared Financial Infrastructure refers to common systems, networks, and protocols utilized by multiple financial institutions to conduct operations. This infrastructure facilitates interbank transactions, market data exchange, and regulatory reporting across the sector. Its objective is to reduce redundancy, lower costs, and enhance overall market efficiency. Such shared resources are essential for the functioning of modern financial markets.
Context
News frequently discusses Shared Financial Infrastructure in the context of central bank digital currencies (CBDCs) and blockchain adoption in wholesale finance. The potential for distributed ledger technology to modernize existing shared systems is a key area of exploration. Debates often concern the governance and security of these common platforms.
This strategic pivot integrates DLT into the core messaging layer, mitigating counterparty risk and reducing operational friction in the $700 billion global remittance market.
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