Aite-Novarica Reviewed DSDC’s Capabilities Powered by KALYP
Aite-Novarica reviewed the capabilities of the Digital Securities Depositary Corporation (DSDC) that are powered by KALYP Technologies (KALYP). Aite-Novarica's report summarizes DSDC's model and takes a deep dive into its technology provider KALYP. Thereby the report covers KALYP's primary products and service offerings, key markets, clients, market challenges solved, and Aite-Novarica Group’s perspective on why DSDC's technology deserves to be in the spotlight. The following pages offer a snapshot and the full report can be obtained here.
DSDC & KALYP
The Digital Securities Depositary Corporation (DSDC) is built around a not-for-profit business model. It is an example of the financial market infrastructure that KALYP’s distributed ledger technology (DLT) powers. Financial institutions that become members of DSDC are invited to directly steer the evolution of the infrastructure via its governing body and are encouraged to become shareholders for further elevated control. This innovative approach melds together the legacy world of centralised finance with a path to a more decentralised future.
KALYP’s technology as used by the DSDC consists of a distributed securities recordkeeping and reference data solution and a multiparty workflow engine, streamlining securities processes. It aims to provide the industry with a unique financial services marketplace that unbundles and modularizes today’s clustered back-office service offerings.
Aite-Novarica Group’s Perspective
KALYP Technologies offers a unique value proposition that addresses many of today’s back-office paint points other DLT offerings don’t address. Its solution enables the setup of new industry business models tailored to groups of entities that provide the infrastructure to the financial market for efficient processing of securities, fully compliant with regulations and jurisdictional practices.
DSDC elevates what used to be managed in silos in the legacy world of centralised finance to a new operational level. Based on KALYP’s technology, it supports a multiparty workflow and offers a rich user interface for easy and fast adoption of issuing and servicing new digital ADRs. Only a few DLT platforms address the user interface module at the outset—one of the many aspects that give an edge to KALYP Technologies.
ADR processing has always been inefficient and was limited to a small set of global banks acting as depository agents. KALYP’s technology offers new business possibilities to established and new ADR market participants, enabling all players to strategically select which roles to play or not in this cross-border market. While addressing significant business pain points using blockchain, KALYP offers a unique proposition for firms and new entrants in cross-border securities transfers. This one is certainly one to watch.
Aite-Novarica is an advisory firm providing insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms - as well as the technology and service providers that support them. The quality of research, insights, and advice is driven by independence and objectivity. For more information, visit Aite-Novarica’s website at www.aite-novarica.com.
About KALYP Technologies
KALYP Technologies is a provider of enterprise software in the capital markets. Its distributed ledger-based software establishes smart market infrastructure for regulated financial institutions and enables more efficient processing of securities in digital format. The firm is independently financed and led by a group of securities industry veterans and distributed ledger technology experts with international presence between London and Boston. For more information visit www.kalyp.com.
DSDC offers distributed market infrastructure delivering more efficient cross-border settlement of securities in digital format; initially Digital Depository Receipts (DDR’s). Any regulated financial institution with an existing service required across the lifecycle of DDRs is invited to apply and join DSDC to offer their security services. Thereby DSDC offers existing firms to position their legacy services for the digital future. For more information, visit DSDC’s website at www.dsdc.net.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for decisions based on such information and it should not be relied on as such.