KDPW is implementing the CSDonDLT project which aims to gauge the impact and added value of implementing solutions based on distributed ledger technology (DLT) in central securities depository services. The first step in this direction is to create a solution to enable the settlement of OTC transactions using blockchain.
The CSDonDLT project and the accompanying White Paper present new current experiences and observations of KDPW regarding the potential and benefits of using blockchain as a supplement and functional extension of the traditional capital market infrastructure.The White Paper is available on https://www.csdondlt.kdpw.pl/en/index.html
The CSDonDLT project will result in the implementation of an additional complementary layer of the depository and settlement system based on blockchain. At this stage, the solution under development focuses on the settlement of OTC transactions, covering the safe-keeping and unencumbered transfer of securities as well as the atomic settlement of transactions within the DLT layer. Full interoperability of both layers of the depository and settlement system will enable smooth transfers of securities from the traditional layer to DLT and vice versa.
In KDPW’s opinion, blockchain allows to redefine and create new models for the safe-keeping and transfer of assets and to build trust between market participants in a shared and distributed IT system.
The presented project is an important step towards the modernisation and development of the domestic capital market infrastructure, responding both to global trends and to initiatives undertaken by other European markets in the implementation of innovative technologies and new business and operating models.
