The FIX Trading Community (FIX) has set up a digital assets-focused committee to establish a set of standards and gather wider industry support and feedback in response to the burgeoning asset class.
The objectives of its Digital Assets and Technology Committee will focus on integration and interoperability; regulatory guidance; and efficient use of distributed ledger technology (DLT).
The committee – seeking wider input from the digital asset community – wants to identify the implications of interoperability between competing digital asset-focused technologies, as well as between digital asset-focused technologies and the traditional financial space.
The committee will also provide advice to help industry participants navigate the rapidly-changing regulatory environment and explore how standards can ease any implementation burden.
Lastly, it hopes to support the industry with the development of common workflow design to efficiently use DLT and smart contracts in an effort to solve existing trade processing workflow issues.
Goncalo Lima, co-chair of FIX’s Digital Assets and Technology Committee and capital markets strategy Lead at R3, a DLT provider, said: “Integration and interoperability are critical for asset tokenisation to scale up. Establishing a set of standards, such as the ones developed by FIX, will play a vital role in lowering barriers to adoption, facilitating innovation and ensuring the secure exchange of data and value across the ever-evolving capital markets landscape.”
“We invite community members to join us as we look to determine how best to harness the power of these new technologies for the greater good of the industry,” Lima added.
Vince Turcotte, co-chair of FIX’s Digital Assets and Technology Committee, said: “Smart contracts, enhanced with the FIX protocol, will facilitate the settlement of both digital and traditional assets in a distributed ledger ecosystem. This is due to their programmable and interoperable nature as well as their ability to automate processes.”
“We are entering a new era, marked by the emergence of new asset classes enriching traditional ones. We see a bright future ahead of us, with new and improved efficiencies and greater transparency across the financial services sector, benefiting all participants.”
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