A gamechanger for capital markets?
At Advanced Blockchain Solutions we strongly believe that the application of our XVA-Blockchain distributed ledger technology to financial services can fundamentally change the way how market partners in the capital market interact in business. Our core proposition gravitates around TRANSPARENCY, EFFICIENCY, SECURITY and ultimately TRUST between business partners.
Blockchain technology has some key characteristics that qualify it as the logical and natural choice when re-thinking financial applications.
- TRANSPARENCY. The blockchain provides easy access and visibility of key transactional data to all market participants, thus helping with building trust in the market partners. In our specific case of XVA Blockchain this entails accredited LEI members who e.g. gain insights into EMIR reporting field information
- EFFICIENCY. Information within the blockchain is easily accessible and available in close to real-time for further processing. Thanks to this advantage we estimate an up to 90% increase in operational efficiency vs. traditional competitors for some of our usecases.
- IMMUTABILITY. Thanks to the decentralized consensus mechanism as applied within the blockchain, it is impossible for participating parties to make after the fact changes to the deal.
- SECURITY. State-of-the-art encryption techniques as applied within XVA-Blockchain ensure the full integrity and security of all submitted data.
- RELIABILITY. No single point of failure as in central systems thanks to DLT technology which is decentral by design which results in a very high availability of the services as well as protection against data loss.
- STABILITY. As all contributors to the blockchain jointly approve the release of a new block it is not possible for a single party to individually destabilize the system.
How blockchain technology improves financial service offerings
Apart from improved security, transparency, stability and reliability for all involved parties as outlined above, the application of blockchain technology greatly improves on operational efficiency by increasing speed and decreasing cost of financial services. Thanks to full digitalization and central availability of key data points within the blockchain, turnaround time of service offerings is much quicker than in traditional set-ups. At the same time operational workflow investments decrease considerably, leading to cost savings for the involved parties. We estimate a savings potential of up to 90% for some of our usecases.