Disparate systems and a lack of standardization in the derivatives markets mandate the need for reconciliation, which increases costs for market participants. Additionally, delays and friction points in trade processing introduces high levels of operational risk. Digital Asset’s Application for Derivatives Lifecycle Events streamlines the flow of cleared derivatives transaction processing and provides a real-time golden source of truth, eliminating the need for burdensome reconciliation activity. Using Daml, post-trade business workflows are synchronized and manual processes are eliminated.

A Distributed Ledger Technology approach to Direct Custody and Clearing (“DCC”) creates an opportunity for Global Custodians to reduce the costs and risks associated with operating and providing local custody and clearing services. The application shows the direct asset control process by demonstrating the streamlined lifecycle of a trade from submitting a Receive/Delivery Instruction to settlement of assets. Role-based visibility of asset ownership information is a key feature of the application. Assets are tagged with labels that govern the visibility of asset data between participants.

Collateral represents the group of assets pledged or transferred to a counterparty as part of a transaction in order to mitigate risk. It is a foundational element of the financial markets that impacts almost all products and lines of business due to the fundamental need to manage risk and exposure, as well as ensure regulatory compliance. Transactions requiring the use of collateral include repo (bilateral or triparty), derivatives, securities lending, and more. Digital Asset has developed an end-to-end collateral management application that has the opportunity to change the way collateral is utilized, optimized, and mobilized.

Issuing a new bond is currently a highly fragmented process. A Distributed Ledger Technology (DLT) approach to bond issuance creates opportunity for Issuers, Auction Agents, CSDs, and Banks to reduce costs, reconciliation efforts, and risks associated with the process. This application demonstrates the powerful modelling properties of Daml throughout the features of of the application: issuing a bond, commissioning a Dutch auction, bidding to an auction, distributing bonds to winning bidders, and finally the redemption of the issued bond at maturity