Research done by TMX Group and Payments Canada has shown that blockchain can be used for instant securities settlements. Along with the Canadian Central bank, the three organizations have discovered that assets as well as cash can be tokenized, resulting in instant settlements through blockchain tech.
Project Jasper Bears Fruit
It is certainly good news for the speed of settlement that these findings have come to light, after several months of testing. However, there have been no findings that suggest that this process would be cost-saving, despite cutting out the middlemen and automating a process that can be complicated. The CEO ofPayments Canada, Gerry Gaetz, said:
This shows that it is possible to deliver payments in a way that has never been done before – by directly swapping cash from buyers to sellers, resulting in instant settlements. [However], we’re still uncertain after doing this work that there are significant savings possible for participants. It’s not clear that all the participant dealers and banks are going to get a significant benefit out of this settlement system.
Canada is not the only place in the world investigating the possibility of automatic, instant securities settlement. Indeed, the European Central Bank has already announced the launch of a similar service for later this year, albeit one that won’t be using blockchain.