DLT capable of supporting 100 million trades per day: DTCC study

The Depository Trust and Clearing Corporation (DTCC), a firm that provides infrastructure services to financial markets across the world, has released a new study that demonstrates that distributed ledger technology (DLT) is capable of supporting 100 million trades as average trading volumes per day in the US equity market. The study was conducted by Accenture and powered technology by Digital Asset (DA) and R3. It proved that DLT can perform transactions at a very high rate compared to public block chains. DLT can equate to 115 million daily trades or 6,300 trades per second for five hours continuously. As of now, public blockchains operate at single or dual digit per second performance, which further indicated that a DLT might be able to support. It is only a starting phase and only basic functions have been tested. DTCC must put extra work into it to find out if DLT can meet to the expectations of resiliency, security, operational needs and regulatory requirements for its existing clearance and settlement system. “We are excited to lead this important work to advance the performance capabilities of DLT and help create new possibilities for leveraging the technology more broadly across financial markets. As an early adopter of DLT, we are encouraged by the results of the study because they prove that the technology’s performance can scale to meet the needs of markets of different sizes and maturity,” said Murray Pozmanter, Head of Clearing Agency Services, DTCC. DTCC ordered the benchmark study and provided expertise and needs to Accenture to structure functional prototypes of the US equities clearing and settlement system using DLT. The engineers from Digital Asset (DA Platform) and R3 (Corda Platform) provided support on performance tuning. More than 170 nodes were built by Accenture to showcase the financial ecosystem of exchanges, market participants and broker/dealers supported by DTCC. “This project answered key questions and built serious confidence in blockchain’s ability to drive large-scale transformation. The close collaboration with the DTCC and our alliance partners, Digital Asset and R3, enables us to push DLT performance to new levels against real-world requirements and conditions,” said David Treat, Managing Director, Global Blockchain Lead, Accenture. See Also:  Token Takeover: Kenya’s DLT taskforce chairman aims to tokenize the economy Intel to automate DLT blockchain verification Image via Shutterstock Join our Telegram group