Is Blockchain Effective for Securities Settlements?- Bank of Canada

Canada’s central bank, Toronto Stock Exchange operator TMX Group, and non-profit organization Payments of Canada, completed tests showing Blockchain can be used for instantaneous securities settlements.

What is the conclusion?

The three companies concluded that Blockchain, the technology originally developed for Crypto-currencies such as Bitcoin (BTC), is usable for automatic securities settlements in real time. Both cash and assets can effectively be “tokenized” for instant exchange.

“This shows that it is possible to deliver payments in a way that has never been done before- by directly swapping cash from buyers to sellers, resulting in instant settlements.”
-Gerry Gaetz, president and CEO of Payments Canada

How it is beneficiary for others?

A pilot of Ripple’s Xrapid liquidity solution for its Blockchain-powered real-time gross settlement system received positive results from financial institutions, which reported transaction savings of 40-70 percent and improved transaction speeds.

JPMorgan has also just filed a patent in the U.S. for a peer-to-peer payments network, which would use Blockchain technology for intra and inter-bank settlements.

"Blockchain is such a powerful concept that it can almost overturn financial system."