SETL Unleashes Real-time Blockchain Settlement For Securities Depositories and Payment Systems – Capital Markets

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London Blockchain startup SETL, an institutional payment and settlement infrastructure based on Blockchain technology, has announced the launch of its Blockchain-powered OpenCSD platform.

“The time has come to stop talking about the characteristics of Blockchain and to start realising its promise. Our OpenCSD platform will revolutionise the way securities depositories and payments systems are organised. A group of participants can now permission a working Blockchain platform in a matter of minutes and jointly record and settle changes in ownership. This will help bring competition into a segment of financial markets which has thus far been dominated by quasi-monopolistic incumbents,” said Peter Randall, CEO of SETL.

The OpenCSD platform, SETL’s first commercial offering, enables any market participant to commission and run a permissioned registry service for payments, settlement and clearing of cash and other financial instruments. The platform is available today and powered by the SETL Blockchain technology, which has been benchmarked to settle billions of transactions a day in real-time.

SETL’s OpenCSD platform has been designed to be compatible with existing and forthcoming regulations such as the European CSDR, but is not specific to any particular regulatory model and, as such, is jurisdictionally agnostic. The OpenCSD platform builds an organisational functionality on top of the SETL Blockchain engine.

The OpenCSD functionality comprises four main components:

  1. A permissioned membership structure.
  2. A range of control functions including clearing, settlement and corporate actions.
  3. Liquidity functionality including collateral and repo facilities.
  4. A secure messaging system which can be used to transmit  ISO messages as well as enable bespoke communications between participants in a highly secure environment.

Furthermore, the OpenCSD functionality will provide granular identity services by enabling participants to use industry initiatives, such as the Legal Entity Identifier (LEI) system, to allow authority and transaction management. Use of the OpenCSD platform in some applications in some jurisdictions will require prior regulatory approval.

The OpenCSD platform will enable the interaction of different participants, including custodians, registrars and payment institutions. It can be used co-operatively or deployed by a single institution to maintain registers for their own customers. It is asset neutral and works across securities, private equity or as a platform for FX or e-money. Assets held on one instance of the platform can be transferred to other instances subject to the agreement of both parties.

Peter Randall, CEO of SETL added:

“The OpenCSD platform heralds a new era of interoperability, efficiency and flexibility for issuers and asset owners alike, to collaborate and establish their own settlement destinations. It is a means for market participants to empower themselves and to design services around their own needs and cost expectations. We envisage service providers plugging into these projects to provide facilities such as issuer support, payments and valuation. We expect to work with a number of companies in these areas to support these initiatives.”

The SETL OpenCSD platform is available on a subscription basis and is accessible through a secure user interface and via a functionally-rich API. SETL expects to take on a limited number of subscribers for the first phase of the roll-out. In addition, SETL will establish a development partner programme, which will engage with financial technology companies who wish to design and build functionality around the OpenCSD platform.

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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