A new paper explores whether a CCP could be replaced by a so-called distributed Financial Market Infrastructure (dFMI) using blockchain. Its nine authors include executives from JP Morgan, Fnality and Clearmatics. Fnality is the payments infrastructure, formerly known as the Utility Settlement Coin, backed by 15 major financial institutions, which plans to launch a UK synthetic wholesale CBDC, to be followed by other jurisdictions. Clearmatics came up with the concept behind Fnality.
Unlike the CCP model with a central party sitting in the middle of every trade, with a dFMI, all transactions are executed peer to peer using a blockchain network governed by its participants. The market participants operate the network nodes, and the regulator can have permission to see all data, providing a view over an entire market.
The original 2020 paper version is available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3530996