A Division of Strate, was launched on 1 August 2016 to explore and embrace the disruptive technologies that the industry faces.
Financial Market Infrastructures, specifically CSDs, are in the eye of a storm of massive change. The recent advent of blockchain technologies, Fintech start-ups and the onset of crypto currencies only covers the surface of the disruptions facing financial services. The need for innovation and change has become an unquestionable.
At a high level, a blockchain is a single distributed ledger that anyone can view, with the option of no single participant or authority in control. It is collectively kept up-to-date and transactions are immutably recorded and cryptographically stored. The technology has the potential to provide credibility and trust to the ecosystem, with built-in smart logic and high levels of automation.
Blockchain is set to be the biggest disrupter facing the financial services industry who need to get ahead of the disrupters and disrupt itself. Despite its sheer size and level of entrenchment, the industry is not safe from radical innovators.
Given the overwhelming momentum regarding the blockchain amongst CSDs, Fractal Solutions is directly pursuing a number of initiatives in this space. Fractal Solutions will work with the market to develop standards, work with regulators and bring about change to the industry.
While the early literature around the blockchain advocated the displacement of CSDs, there remains a need for the coordinated oversight of clearing, settlement and asset servicing in order to ensure the orderly functioning of a market. CSDs will continue to play a critical role in operational governance, coordinating the evolution of the ledger protocols, managing the introduction or cancellation of tokens on the ledger, regulator interface etc. It is against this backdrop that blockchain will be one of the primary areas of responsibility for Fractal Solutions.
To contact Fractal Solutions, email fractalsolutionsstrate.co.za (subject: Fractal%20Solutions%20Query) .
Below, view the video of Tanya Knowles, the Managing Executive of Fractal Solutions, discussing Blockchain at a recent GIBS conference.
Below, you can access various third-party industry articles that highlight market developments and trends: