• About
  • Privacy Policy
  • Terms
  • Contact
Friday, January 27, 2023
Financial Eye News
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
Financial Eye News
No Result
View All Result

Euroclear/Fnality: tokenised stocks and bonds have clear advantages

March 21, 2022
in Latest Financial News
Reading Time: 2 mins read
51 1
ADVERTISEMENT

Mass mobilisation is needed for any successful revolution. On Monday, Euroclear added a little extra weight to the movement to bring new digital assets into the mainstream. The clearing giant is investing in Fnality, a payments consortium whose members include Nasdaq and UBS. The deal paves the way for financial institutions to clear and settle dealings in digital securities using a distributed ledger system.

Euroclear, in common with other traditional finance institutions, cannot afford to get left behind as digital assets are used more widely. Blockchain-based securities could supplant the conventional stocks and bonds Euroclear handles. They may feature as proxies for the latter as well as outright alternatives.

Existing systems of clearing and settlement involve verification by a centralised body that are both time consuming and costly for participants. Proponents say that it, in contrast, it should be possible to settle large volumes of digital asset transactions using blockchain technology in real time, much faster and more cheaply.

Nearly instantaneous transactions clearly bring benefits. But the biggest savings could come from reductions in cash liquidity requirements for participants. Using synthetic central bank digital currencies, another potential development, would enable this change. This reduces the financing strain and cost for banks on either side of transactions and in theory lowers overall financial stress from funds tied up in the system.

Euroclear settled almost a quadrillion (1,000 trillion) euros of securities transactions last year. It has chosen Fnality for a reason. Set up in 2019, the payments company already has the backing of some of Europe’s largest banks, including Barclays and Santander.

Regulated assets are currently a tiny part of decentralised finance, which is dominated by cryptocurrencies and non-fungible tokens. That is slowly changing as regulators bring tokenised equities and bonds into their jurisdictions. Volumes are currently small but they could account for over a quarter of listed trading volumes by 2030, according to analysts at Quinlan & Associates. That is too big an opportunity — or risk — for established infrastructure providers to overlook.

The Lex team is interested in hearing more from readers. Please tell us what you think in the comments section below.

Source: Financial Times

ADVERTISEMENT
Share6Tweet4Share1SendShareSend

Related Posts

Latest Financial News

Oil tanker jam forms off Turkey after start of Russian oil cap

December 5, 2022
Latest Financial News

The west’s messy Russian oil price cap begins to bite

December 5, 2022
Latest Financial News

Coinbase bonds: FTX saga saps credibility of Wall St wannabe

December 5, 2022
Latest Financial News

Crypto group Circle abandons $9bn deal to go public through Bob Diamond’s Spac

December 5, 2022
Latest Financial News

Trafigura secures $3bn loan facility to provide Germany with natural gas

December 5, 2022
Latest Financial News

Market turmoil threatens to undermine efforts to curb inflation, says BIS

December 5, 2022

Popular Stories

  • AIG to launch cut-price IPO of life and asset management unit

    48 shares
    Share 19 Tweet 12
  • EY boss targets $10bn boost from Silicon Valley tie-ups after break-up

    32 shares
    Share 13 Tweet 8
  • Tesla delays plan to restore Shanghai output to pre-lockdown levels -memo

    32 shares
    Share 13 Tweet 8
  • TV production giant Banijay to go public via Arnault-backed Spac

    30 shares
    Share 12 Tweet 8
  • Nio to Invest $32.8M Building R&D Labs in Shanghai By Financial Eye

    30 shares
    Share 12 Tweet 8
ADVERTISEMENT

Latest News

Taylor Swift Fans Sue Ticketmaster’s Parent Company

December 5, 2022

Fisker trades down following price cut at Citi By Financial Eye

December 5, 2022

UAW president faces run-off election as reformers make gains

December 5, 2022

Felipe Valls, 89, Whose Cuban Restaurant Became a Political Hub, Dies

December 5, 2022

Longroad buys 98-MW solar farm in California

December 5, 2022
Facebook Twitter LinkedIn

Financial Eye is one of the most trusted news sources for Financial News, global news and local USA news, we provide the news from the most trusted sources.

LEARN MORE »

Recent News

  • Taylor Swift Fans Sue Ticketmaster’s Parent Company
  • Fisker trades down following price cut at Citi By Financial Eye
  • UAW president faces run-off election as reformers make gains

Sections

  • Business
  • Climate
  • Commodities
  • Companies
  • Cryptocurrency
  • Cryptocurrency
  • Forex
  • Green Energy
  • Latest Financial News
  • News
  • Politics
  • Stock Market News
  • Technology
  • Videos

© 2022 Financial Eye News Media

No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • Videos

© 2022 Financial Eye News Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Subscribe To Our Daily News Round-Up.

The top ten most-read stories direct to your inbox

You have Successfully Subscribed!

You have Successfully Subscribed!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.