The Dynamic Duo: BNP Paribas and Digital Asset

On September 15, BNP Paribas’ securities arm took a significant step into the future of trade and settlement by teaming up with Digital Asset. This partnership aims to harness the power of DAML-based smart contracts, creating a suite of real-time applications that promise to shake up how trades are executed.

Connecting Markets: A Global Reach

The new applications aren’t just for show; they’re engineered to connect BNP Paribas Securities Services to some heavyweight players—think major global stock exchanges like the Australian Securities Exchange (ASX) and the Hong Kong Exchange (HKEX). These connections will ensure that market participants in the Asia Pacific region have real-time access to exciting blockchain-based trading and settlement platforms.

Bridging Gaps with Blockchain

Specifically, BNP Paribas will tap into ASX’s blockchain-powered equity transaction platform, known as the Clearing House Electronic Subregister System, or CHESS. This handy conduit is expected to streamline operations across various platforms, opening up new avenues in trade execution.

Smart Elections: Corporate Actions Just Got Smarter

One particularly noteworthy application in the works is a smart elections service for corporate actions, set to launch in 2021. This app promises to enhance the way corporate actions, such as dividend reinvestments and purchase decisions, are handled. By providing instant access to the entire corporate action chain, companies can reduce processing times and bolster operational efficiency. Investors, on the other hand, will have the luxury of making informed decisions based on the most timely market data.

DAML: The Digital Asset Modeling Language

For those wondering what the heck DAML is, it stands for Digital Asset Modeling Language—it’s not just a fancy abbreviation! This expressive language, introduced back in April 2016, has been designed specifically for financial institutions, enabling them to model and execute agreements using distributed ledger technology (DLT) and smart contracts. In the digital age, it’s like giving caffeine to a sleepy accountant!

Global Partnerships Enhancing Blockchain’s Reach

BNP Paribas isn’t alone in its blockchain journey. Both ASX and HKEX have embraced the innovative potential of Digital Asset. The ASX inked a Memorandum of Understanding with Digital Asset back in 2019, ensuring DAML integration into its CHESS registry system. Meanwhile, HKEX partnered with Digital Asset in October 2018 to propel post-trade processes forward and mitigate settlement risks, effectively placing both exchanges in the fast lane of blockchain adoption.

The Growing DAML Ecosystem

DAML’s influence is expanding, with new implementations popping up all around the globe. For instance, on September 14, China’s national blockchain initiative, the Blockchain Services Network, announced it would support DAML for developing decentralized applications. Not to be left out, Singapore’s major investment holding company made waves in early September by issuing its first digital bond powered by this very language.

So, what does all this mean for the average Joe on the street? Well, we might not be trading stocks over a game of poker just yet, but the seamless integration of blockchain technology into financial services could make trading smoother, faster, and more efficient—a win-win for everyone involved!