US Executive Order Highlights Key Concepts of DSDC and KALYP
U.S. President Biden’s recent Executive Order on Ensuring Responsible Development of Digital Assets highlights the criticality of safe and affordable cross-border financial services and the support of responsible technologies ensuring U.S. leadership in this space, resulting in economic competitiveness for the coming decades. DSDC, powered by KALYP, was born at the centre of the traditional financial market and has been working along these principles for years; the inflection point is here.
The Executive Order acknowledges the opportunity and the growth potential a digital asset ecosystem presents and outlines the need for evolution so the United States continues to be a leader in this space. Benefits that digital assets provide to investors are being recognized, as they are seen to help expand fair access to financial services by e.g. “making investments and domestic and cross-border funds transfers and payments cheaper, faster, and safer”.
Alistair Jones, CEO of the DSDC comments “It was great to see President Biden's order on responsible development of Digital Assets, with a strong focus on safe cross-border financial services; these have been in our D.N.A. in developing our Digital ADRs”.
DSDC, powered by KALYP’s permissioned blockchain solution, has been working to do exactly that - with the digital assets representing American Depository Receipts - by streamlining investing in foreign securities. The foreign underlying securities are processed by existing service offerings from firms like State Street, Broadridge, Cleartrust and others. The digital ADR has been designed so it can be integrated into today's settlement and safekeeping solution around DTC. All services are orchestrated via a marketplace and connected via a workflow engine, with substantial benefits to expected for US investors:
- Zero barriers for adoption for investors through fully DTC eligible securities (no additional wallet required),
- 30% lower fees on average for holding digital ADRs and a new / lower transaction fee model,
- 80% faster cash distributions such as cash dividend payments, and soon
- 40bps higher cash distributions (e.g. dividend payments) as well as
- Ability to vote in shareholder meetings.
Critically, the Executive Order reinforces the support of technological advances in the responsible development, design, and implementation of digital asset systems while prioritising privacy, security, combating illicit exploitation, and reducing negative climate impacts. KALYP’s privacy-enhanced blockchain-based software application is operated and governed by regulated financial institutions to ensure regulatory-compliant processing of any digital securities types in future.
About Digital Securities Depository Corporation
DSDC offers distributed market infrastructure delivering more efficient cross-border settlement of securities in digital format; initially Digital Depository Receipts (DDRs). Any regulated financial institution with an existing service required across the lifecycle DDRs provider is invited to apply and join DSDC and offer their security services. Thereby the DSDC offers existing firms to position their legacy services for the digital future. For more information, visit DSDC’s website at www.dsdc.net.
About KALYP Technologies LTD
KALYP Technologies is a provider of enterprise software for capital markets. Its distributed ledger-based software establishes a 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 an international presence between London and Boston. For more information visit www.kalyp.io.
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