Joining together under the International Securities Services Association (ISSA), thirty Central Securities Depositories (CSD) are now working together to improve custody infrastructure and come to terms on policies and procedures for digital assets.
Key members of the initiative are: Belgium’s Euroclear, Switzerland’s SIX, the Abu Dhabi Securities Exchange (ADX) and the National Settlement Depository of the Moscow Exchange Group (NSD). These entities have traditionally dealt in custody matters for stock certificates and now see the tokenization of securities as imminent. Head of Innovation at the NSD, Artem Duvanov, was quoted: “A new world of tokenized assets and blockchain is coming. It will probably disrupt our role as CSDs. The whole group decided we will be focusing on tokenized assets, not just blockchain but on real digital assets.”
Walter Verbek, Global Head of Business Model and Innovation for Euroclear indicated the next phase of research will involve some large custodian banks such as: BNY Mellon, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Standard Bank, Standard Chartered and State Street.
The group intends to present finding of their work at the annual Society for Worldwide Interbank Financial Telecommunication (Sibos, formerly known as SWIFT International Banking Operations Seminar) conference held in London this fall.