Blockchain, DLT and Fintech

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Paper Type

Short

Paper Number

2083

Description

We document ongoing research on a digital artefact comprising a settlement layer for financial contracts traded over the counter (OTC). Working with a team of stakeholders from a hosting organization we employ the design science research methodology (DSR) in the design, implementation and evaluation of a DLT based settlement layer for OTC contracts. Our findings indicate that DLT may serve towards reducing execution costs while mitigating counterparty credit risk through deterministic automation of key processes in the OTC contract lifecycle. Extrapolating these early results, we introduce three general propositions on the systemic and commercial implications of DLT. We contribute to the broader IS discourse on the capacity for emerging digital technologies to upend traditional knowledge processes in the financial services.

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Dec 14th, 12:00 AM

Settlement with Distributed Ledger Technology

We document ongoing research on a digital artefact comprising a settlement layer for financial contracts traded over the counter (OTC). Working with a team of stakeholders from a hosting organization we employ the design science research methodology (DSR) in the design, implementation and evaluation of a DLT based settlement layer for OTC contracts. Our findings indicate that DLT may serve towards reducing execution costs while mitigating counterparty credit risk through deterministic automation of key processes in the OTC contract lifecycle. Extrapolating these early results, we introduce three general propositions on the systemic and commercial implications of DLT. We contribute to the broader IS discourse on the capacity for emerging digital technologies to upend traditional knowledge processes in the financial services.

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