Together with Cashlink GmbH and Mr. Marius Bauer, CFA, we have analysed the potential of distributed ledger technology on the capital market in a comprehensive study! The study compares the costs of a conventionally issued bearer bond with a crypto security in accordance with eWpG, which is issued on a public blockchain and analyses the entire value chain of a capital market transaction.

In order to be able to draw conclusions about cost positions from the processes of a capital market transaction, we chose an independent “bottom-up” approach. To assess the costs, capital market experts and market participants were interviewed and price and service descriptions were analyzed. The study concludes that a DLT-based capital market infrastructure can achieve cost savings of up to 85% in middle and back office processes compared to the existing capital market infrastructure by 2028. Depending on the underlying assumptions, there is already a potential cost savings of up to 22% today.

The study also shows that the savings potential lies primarily in middle and back office processes — in particular in the Corporate Actions & Asset Servicing and Clearing & Settlement processes.

The study is available for free download via the following link: TokenizationStudy: Cost savings potential of tokenization (tokenization-study.com)

If you have any questions or comments, please feel free to contact us!