The Distributed Ledger will Change Financial Markets

Distributed ledger technologies (DLT) have the power to transform economies.

We stand before a future of frictionless transactions where any physical or digital asset, whose ownership can be digitally recorded and verified, can be invested in, easily transferred, or used as collateral instantly 24/7/365. This change has the potential to significantly increase the velocity of the deployment of capital in markets.

As well as removing the need for paper certificates and scanned copies of title documents which may currently take hours, days or weeks to verify and register, DLT brings multiple other benefits:

• Audit trails, immutability and multiple party redundancy
• Shared views of databases enabling all participants to stay up-to-date in real-time
• Ability to share records with trusted parties such as auditors and regulators
• Federated data models which reduce the market-wide risks associated with systemic infrastructure providers
• Facilitating asset tokenisation and fractionalisation, adding liquidity to illiquid asset classes.
• Reduced implementation costs enabling the democratisation of access to the market

However, whilst crypto currencies have been at the forefront of digital asset innovation, using permissionless systems as the backbone of a new decentralised finance model, prudential regulators will not allow the trillions of dollars of existing securities to be transferred on-chain without clearly established regulation, oversight and many of the legal frameworks that have proven themselves in traditional markets.

ClearToken believes that the future will be a unified market structure where reimagined financial market infrastructures provide the clearing & settlement systems for digital versions of all assets. Only when this is delivered will institutions be able to participate at scale, and the huge benefits to be gained will begin to unfold.

The instant movement of any asset, any time, by anyone, anywhere. This is the ClearToken vision.