Understanding the Challenges of Blockchain in Securities Settlement

The very volatile prices of Bitcoin over the past two years have somewhat obscured another, very important question in the capital markets: Can blockchain as a technology revolutionize the post-trade securities world? Although there has been some discussion of blockchain moving into the post-trade securities space, the transition is much harder than it looks. The post-trade world is quite fragmented, with various firms performing different but interrelated functions, depending on their roles in the market. This TABB Group report examines the securities post-trade world in detail and explores how post-trade processes would have to be modified in order to allow blockchain methodologies to work.