Poland’s national securities depository, KDPW, has announced a collaboration with electronic money institution (EMI) StaBillon on CSDonDLT, a project implemented to gauge the impact and added valiue of DLT-based solutions in CSD services. With this collaboration, the project will first aim to enable the atomic settlement of over-the-counter (OTC) transactions on a delivery-versus-payment (DvP) basis.
KDPW reveals in a press release that the plan is to implement “an additional complementary layer of the depository and settlement system based on blockchain. The CSDonDLT project is accompanied by a white paper, which presents KDPW’s current experiences and observations regarding the potential of blockchain in traditional capital market infrastructure. StaBillon is the only licensed EMI in Poland registered with the Polish Financial Supervision Authority (KNF).
KDPW president Maciej Trybuchowski says, “We at KDPW see DLT not as a threat to traditional market institutions but as an opportunity for their transformation and adaptation to the requirements of the modern digital economy. KDPW’s experience with DLT confirms that it is possible for blockchain-based solutions to coexist harmoniously with legacy market structures. The key to success is the integration, not the elimination, of professional intermediaries and financial institutions, which play and will certainly continue to play a key role in ensuring market stability, efficiency and security, including investor protection.”
