In securities financing markets, most participants will look towards some form of smart contract as the most efficient way to lend crypto and secure collateral. Smart contracts have been around for years in both traditional securities finance and crypto; the idea is that code determines when monies are received, lifecycle events occur and the transaction is unwound. As an example, Broadridge’s Digital Ledger Repo is based on smart contracts that represent a repo transaction instead of engaging in the older electronic format requiring both sides to reconcile and settle independently. Smart contracts can be readily understood by securities industry professionals from the bottom up.
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