Distributed Ledger Platforms – Digital Asset

This article Distributed Ledger Platforms – Digital Asset was first published to www.kcbusinesslawgroup.com

Below is a good article from CoinCentral on a new company that is working in the crypto space.  As a part of our FinTech practice, we are constantly dealing with the issues in the article.  What we do is help our client navigate the waters that are described in the article.  The article is a bit sales-y, but it’s still a good read on some of the innovations that are being brought to the market. Be sure to check it out. For more about us, visit https://kcbusinesslawgroup.com/Posted by Business Law Group.What Is Digital Asset? | Distributed Ledgers for Financial InstitutionsWhat Is Digital Asset? | Distributed Ledgers for Financial InstitutionsDigital Asset HoldingsBlockchain technology is often called the “Internet of value.” If so, it makes sense that the financial industry should be among the biggest to benefit from distributed ledgers. Digital Asset is a company providing a flexible infrastructure for regulated financial institutions to share processes and data securely. And it’s one of the first big movers to start developing products that will integrate blockchain into the heavily regulated global financial markets.Its current project portfolio, partnerships, and overall vision are set to bring a steep change to the way that financial and other multi-party transactions are carried out. This is much needed for an industry that still feels the regulatory repercussions of the 2008 global crisis.Current Landscape in the Financial IndustryThe financial industry processes transactions worth trillions of dollars on a daily basis. The infrastructure that processes this transaction volume has evolved–laws, market regulations, computer systems, and databases.There’s a vast amount of data duplicated across different databases that serve to create trust and resilience in the transactions that are taking place. Each party to a transaction must reconcile each entry, a necessary exercise to ensure the integrity of recorded data. Think double-entry bookkeeping on a global scale.Because the current infrastructure has evolved to deal with a heavy transaction volume over time, it comes with problems. If there is a regulatory change, like those prompted by the global financial crisis, systems need to be updated to accommodate the changes.Similarly, hackers force developments and upgrades in security protocols, which in turn require software upgrades that can be expensive and cumbersome for financial firms to apply across legacy systems.Enter Digital AssetDigital Asset recognizes the potential that distributed ledger technologies (DLTs) can bring to the financial sector. DLTs provide a permanent record of truth held between multiple parties, making the duplication of data across various systems controlled by different parties redundant.DLTs update in real time, unlike many current systems. The automation capabilities of smart contracts also provide enormous value within the financial sector, creating an automated workflow for the exchange of value, with an immutable fulfillment of agreed conditions. Smart contracts, therefore, can help to standardize and automate the many complex legal agreements that are commonplace across the financial industry today.Digital Asset also understands that existing blockchains are generally not fit for the purpose of the financial industry. This is due to the many legal and market […]

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