Blockchain technology, along with distributed ledger technology (DLT)Many experts now believe that Facilitate multiple explosions of creativity and unparalleled levels of A digital transformation not seen since the advent of the Internet.
Of all sectors, the financial sector in particular is very likely to be most affected by the disruptive potential of technology. This article first presents the essential aspects of the new transaction model provided by DLT. It then outlines the supposed main areas of application of DLT in finance, be it capital markets or corporations. Finally, we would like to evaluate the impact of DLT on financial markets, with particular focus on the post-transaction infrastructure where DLT looks particularly promising.
Blockchain technology has a lot of promise in the financial sector, especially in both the financial market infrastructure and the insurance industry. At the heart of this passion for DLT is the new distributed transaction model that this technology allows, based on Satoshi NAKAMOTO’s white paper (2008). Indeed, one of the main drivers of blockchain innovation is the transition it must facilitate from centralized and proprietary ecosystems to decentralized and interactive equivalent ecosystems. For financial actors, especially banks, this should mean an increased risk of decentralization and a potential threat to some activities, especially those in which banks have hitherto acted as central coordinators. However, the growing interest in DLT by financial institutions is not limited to fears of further decentralization, but appears to stem from a growing understanding that technology can fuel a wave of change and innovation that is beneficial to both financial institutions themselves and their customers. or corporations. We attempt to establish a brief list of the many potential applications of DLT in finance, focusing on the third and final part on the impact this may have on financial markets, especially post-trade infrastructure, in the second part of this article.