FMIs Leading the Way: Financial Market Infrastructures (FMIs) like DTCC, Clearstream, and Euroclear are taking a leading role in driving the adoption of distributed ledger technology (DLT) and digital asset securities (DAS).
Digital Asset Securities Control Principles (DASCP): The FMIs have collaborated to develop the DASCP, a comprehensive risk and control framework for digital asset securities.
Goals of the DASCP: The DASCP aims to outline a safe and efficient ecosystem for DAS, identify potential risks, and provide recommendations for controls to mitigate those risks.
Key Principles:
Legal certainty and regulatory compliance
Resilience and security
Safeguarding customer assets
Connectivity and interoperability
Operational scalability
Industry-Wide Engagement: The DASCP is intended to be the starting point for further industry collaboration to enable standardisation, drive adoption, and unlock the value of DAS.
Transitioning Stewardship: The FMIs plan to transition the stewardship of the DASCP to an industry association to ensure broader engagement and alignment within the ecosystem.
Implications for Firms:
Enhanced Risk Management: Firms can leverage the DASCP to identify and mitigate risks associated with DAS, improving their risk management practices and enhancing the security of their operations.
Regulatory Compliance: The DASCP guides ensuring compliance with existing and evolving regulatory frameworks, helping firms navigate the complex legal landscape of digital assets.
Increased Adoption: The DASCP can help accelerate the adoption of DAS by providing a clear roadmap for implementation and addressing concerns about security and risk.
Improved Interoperability: The principles promote interoperability between platforms and systems, facilitating smoother transactions and interactions across the financial ecosystem.
Increased Trust and Confidence: By adhering to the DASCP, firms can demonstrate their commitment to security, risk management, and regulatory compliance, building trust and confidence among investors and stakeholders.
Industry Collaboration: Firms are encouraged to actively participate in the ongoing development and refinement of the DASCP, contributing to the establishment of industry-wide standards for digital asset securities.
Overall, the DASCP is a valuable resource for firms navigating the rapidly evolving landscape of digital asset securities. By embracing these principles, firms can unlock the transformative potential of DLT while ensuring the financial markets' safety, security, and integrity.
#dtcc #euroclear #bgg #digitalassets
Wishing you the best