National Settlement Depository (NSD), Russia’s central securities depository, organized a special panel discussion focused on the infrastructure of the crypto assets market at Sibos, an international financial forum.
Panel discussion participants included representatives of global companies experienced in implementing real projects based on distributed ledger technology. Colin Platt, Blockchain & Cryptocurrency Specialist, 11:FS, moderated the discussion; speakers included Artem Duvanov, Head of Innovation, NSD; Walter Verbeke, Global Head of the Business Model and Innovation, Euroclear SA/NV; Joseph Lubin, co-founder of Etherium and CEO of ConsenSys, and Igor Khmel, founder and CEO of BANKEX.
Today, the issue of developing the crypto asset market remains very important. An imperfect legislative framework and the absence of reliable infrastructure prevent the inflow of funds into crypto currencies and ICO. Against the background of the first regulatory steps for qualifying and structuring this sphere, the issue of investor rights protection remains crucial.
Despite the diverse group of panel participants and their different views of DLT development, the general opinion among delegates was that infrastructure for crypto assets is necessary, and its transformation is inevitable.
Igor Khmel described the problem: “Today, the crypto market and crypto exchanges lack funds from major institutional investors. These investors fear risks associated with crypto assets transactions. The parties lack the capacity and expertise of depositories which do not yet work with crypto exchanges.”
Walter Verbeke pointed out: “In capital markets, we see risks which are inseparable: counterparty risks, liquidity, credit, and settlement risks, etc. These risks are not associated with securities or with some elements of infrastructure, such as central securities depositories. They are related to any capital market. These markets created CSDs to manage their risks. We shall create our own roles, controls, and management procedures in the DLT world. This will let us operate in the same safe and effective environment.”
Joseph Lubin shared his experience: “We have developed a decentralized architecture, but due to the regulatory specifics we need CSDs now. As far as we can demonstrate that this system can work efficiently and reliably, we will be able to discuss changes to the legislative framework.”
Artem Duvanov added: “Our goal is to contribute to the emergence of a new class of assets for investors, as well as the ecosystems for ICOs and for the circulation of digital assets on the secondary market. We head up the initiative for developing D3ledger, a distributed digital depository, which will perform CSD functions – record-keeping, safekeeping, servicing assets, and conducting settlements, in a decentralized environment.”