John Whelan, head of Banco Santander’s blockchain laboratory in Madrid, recently spoke about the potential for increasing the decentralized adoption of general ledger technology in current finance.
In his speech during the webinar organized by Fintech Surge and the Future Blockchain Summit on Wednesday, Whelan he noted:
“I could imagine a future where there is a global settlement network for a class of securities assets that operates in a fully controlled, private and permitted layer two above the public blockchain network.”
While acknowledging that current public blockchain networks may not be optimized for high-frequency transactions, Whelan emphasized their suitability for settlement in the financial services arena.
“Settlement is not something that must happen immediately,” Whelan said, adding: “Usually there is a T + 5 settlement in the financial market – we agree on a trade and we wait five days for the settlement.”
For Whelan, financial services stakeholders see significant potential in reducing settlement throughput through blockchain networks.
Banco Santander, head of digital assets, also said that the use of DLT in mainstream finance must reach a point where the ERC-20 or any other blockchain-based token standard becomes suitable for use in what Whelan called anou regulated DeFi ’or reg regulated DeFi ‘. “
In early April, Rune Christensen, Unicorn MakerDAO’s CEO for decentralized finance, said DeFi will require regulatory clarity move from the current isolated bubble phase towards a stronger link with current finances.
Whelan also touched on the recent announcement that Banco Santander is one of three financial institutions selected by the European Investment Bank issue a two-year digital bond of EUR 100 million (USD 120 million). According to the bank’s executive director, the legal record of ownership is owned exclusively by the public blockchain Ethereum.
Societe Generale, one of the other banks selected for EIB digital bond issues, also recently issued a security token on the Tezos blockchain.