Around the time when bitcoin and blockchains were starting to catch the attention of the mainstream investment world, a New York-based startup called Digital Asset Holdings (DAH) was launched. Blythe Masters was at its helm.
The Wall Street veteran is knowledgeable about a common problem many banks face: Getting incompatible financial databases to talk to each other. It’s costly, complex, and takes time.
While it might seem that traders work at Red Bull speed in lightning-paced environments, the technology used to execute trades is remarkably old-
Fashioned and slow.Lots of phone calls are made, emails traded and even the occasional fax is still sent. It can take up to three days—T3—for stock trades to change hands via clearing houses such as the National Securities Clearing Corporation (NSCC).
It’s a process known as ‘settlement lag.’ Every hour before settlement happens, when a trade precariously hangs between sale and purchase, increases the risk that the trade won’t go through. Obviously, it’s in the banks’ interest to close that lag time as much as possible.Blockchains could help reduce the gap of the entire lifecycle of a trade from days to minutes, even to zero. Read more from wired.com…
thumbnail courtesy of wired.com