Goals
This space will be used to aggregate, categorize, and discuss various use cases around applying DLT and Blockchain to Capital Markets, with specific focus on various Hyperledger Projects.
We attempt to define "good" use cases here as the ones that are most appropriate for the technology and bringing the most benefits by using DLT over the existing infrastructure, systems, and processes.
Draft of categories (to be converted into a mind map graph):
- Capital Markets
- Exchange traded products
- Trading - rarely applicable
- Post-trade
- Fungible products - well suited for DLT in clearing, settlement, and other post-trade activities (GiveUps, allocations, mark-to-market, fees, etc)
- Non-fungible products - well suited for DLT in post trade activities like GiveUp, allocation, mark-to-market, fees, etc
- Risk management
- Margin calculations - typically, too heavy to be done of the ledger itself, but margin management may be a good fit
- Other?
- Over-the-counter (OTC) products
- Deal negotiation - there is a manual process in many markets in this area
- Settlement
- Bond origination/issuance - use of DLT (smart contracts) for syndication process and settlement (commercial paper, bonds)
- Exchange traded products
- Regulation
- Reporting
- Oversight - ability to have a holistic view of a market or specific firm
- Data and analytics
Special Instruments
Climate Change
The 2018 Sveriges Riksbank Nobel Prize in Economic Sciences was awarded to William Nordhaus for his work on integrating climate change into long-run macroeconomic analysis. Here is a study by the ECB on climate financing.
A SIG has been proposed for studying Climate Change and the dlts. More details will be posted.
The main point made in this study by the ECB is that Green Equity is a better predictor of long run outcome on climate change; debt being a lesser duration product, investors are not as sensitive to longer term threats and opportunities.
Green Bonds
Green Equity
References
Cambridge University Judge School of Business: Enterprise Blockchain benchmark study-October 2019- Use cases on Finance have been called out.
2019-10-ccaf-second-global-enterprise-blockchain-report[1].pdf