“The DAML connects BNP Paribas with major global stock exchanges” the news of the day in the blockchain technology world. BNP Paribas Securities Services is partnering with Digital Asset to develop a number of the DAML-based apps that will provide real-time access to trade and settlement services for customers in the Asia Pacific region. The plan is to have applications based on the DAML connect BNP Paribas’ customers with planned distributed ledger trading platforms of the Australian Securities Exchange (ASX) and the Hong Kong Exchange (HKEX).
How the DAML connects BNP Paribas to markets
Using the Ledger API from Digital Asset, BNP Paribas will be connected to ASX’s future Clearing House Electronic Subregister System Replacement (CHESS), but also with HKEX’s anticipated Synapse platform. These services will provide regional customers with real-time access to these DLT platforms and will be available to participants in markets without integrated DLT.
The first implementation of DAML smart contracts will be a smart election application targeted towards corporate services which facilitates real-time workflow for the whole corporate action chain. This should ensure that all participants receive relevant market data at the same time, which in turn will reduce processing time and increase the efficiency of the corporate action decision-making process.
At the moment, the application is scheduled to be received by users next year. Paired with the planned blockchain-based replacement of ASX’s CHESS platform, the DAML will connect BNP Paribas with two major exchanges in the region.
As one of the top providers of custodian and third-party services in the Asia Pacific region, BNP Paribas is aiming to deliver the full benefits of the DLT solutions. This type of smart contract implementation shows that the blockchain technology is at the forefront of the clearing, trading, and settlement innovations.
DLT is the future of banking and trading
In the official statement, Luc Renard, Head of Financial Intermediaries Client Line & Digital Transformation APAC for BNP Paribas Securities Services stated that implementing the DAML connects BNP Paribas to the future ASX’s clearinghouse solution. “We believe that DAML has the potential to emerge as a new standard for international capital markets. As a platform-agnostic, smart contract language, it can be used by almost any trading and settlement platform an exchange might select”, Renard added.
Jon Rout of Data Asset is of the opinion that their work with BN Paribas could change the way that various institutions perform their custodial and post-trade services. “BNP Paribas Securities Services’ vision of bringing real-time post-trade information to clients and leveraging DAML smart contracts to automate client process flows at scale is an indication of just how transformative DLT will be for custody services.”
This deal comes just a day after the Chinese Blockchain Service Network announced that DAML will be exclusive smart contract language on its platform. This marks another high profile blockchain initiative implementing DAML solution.