#dusk A commonly confused point: settlement efficiency and liquidity are two different things. What Dusk solves is the former.
When NPEX moves more than €200 million of existing corporate bonds onto the chain, the most direct benefit is DvP—securities payment versus payment is completed atomically within the same transaction, theoretically achieving T+0. The traditional route has to go through brokers, the CSD, the custodian bank, and the clearing house. For a corporate bond, it’s normal for settlement to take two days from trade execution to settlement. Squeezed in between are margin requirements and counterparty risk.
XSC also automates coupon distribution, so there’s no need for China Central Depository-style roster cross-checking. This is truly cost-saving—plus it’s saving backend labor costs, which institutions understand.
$SPCXB
But after thinking through this carefully, I’ve actually become more cautious. In the STO track, over the past seven or eight years, the biggest pitfall hasn’t been that issuance can’t be done—it’s that once issued, nobody wants to buy. In the secondary market, there are no market makers posting quotes. Buyers who want to sell can’t find counterparties, and the liquidity discount is even worse than in traditional OTC.
Even if settlement is compressed from T+2 to T+0, for a bond that trades only a few times per month, what improves is the operating experience—not turnover.
To build liquidity, you need three things: a sufficiently large pool of eligible investors, market makers willing to hold inventory, and cross-venue price discovery. Dusk already addresses the first through Citadel to reduce account-opening friction, and addresses the third via an MTF license that connects to regulated venues in the EU. For the second, I haven’t seen a solution yet—market makers need to be able to hedge inventory, but on-chain today there’s a missing piece: a toolchain to hedge euro-denominated bond instruments.
$DUSK
So now, my focus for DuskTrade isn’t how many assets have been listed—it’s the number of monthly executed trades and the bid-ask spread. Issuance size is a publicity metric; the spread is the real demand signal. This also directly affects the valuation logic tied to gas consumption—without turnover, there’s no continuous burning.
Which signal do you pay more attention to?
#dusk @Dusk $DUSK
When NPEX moves more than €200 million of existing corporate bonds onto the chain, the most direct benefit is DvP—securities payment versus payment is completed atomically within the same transaction, theoretically achieving T+0. The traditional route has to go through brokers, the CSD, the custodian bank, and the clearing house. For a corporate bond, it’s normal for settlement to take two days from trade execution to settlement. Squeezed in between are margin requirements and counterparty risk.
XSC also automates coupon distribution, so there’s no need for China Central Depository-style roster cross-checking. This is truly cost-saving—plus it’s saving backend labor costs, which institutions understand.
$SPCXB
But after thinking through this carefully, I’ve actually become more cautious. In the STO track, over the past seven or eight years, the biggest pitfall hasn’t been that issuance can’t be done—it’s that once issued, nobody wants to buy. In the secondary market, there are no market makers posting quotes. Buyers who want to sell can’t find counterparties, and the liquidity discount is even worse than in traditional OTC.
Even if settlement is compressed from T+2 to T+0, for a bond that trades only a few times per month, what improves is the operating experience—not turnover.
To build liquidity, you need three things: a sufficiently large pool of eligible investors, market makers willing to hold inventory, and cross-venue price discovery. Dusk already addresses the first through Citadel to reduce account-opening friction, and addresses the third via an MTF license that connects to regulated venues in the EU. For the second, I haven’t seen a solution yet—market makers need to be able to hedge inventory, but on-chain today there’s a missing piece: a toolchain to hedge euro-denominated bond instruments.
$DUSK
So now, my focus for DuskTrade isn’t how many assets have been listed—it’s the number of monthly executed trades and the bid-ask spread. Issuance size is a publicity metric; the spread is the real demand signal. This also directly affects the valuation logic tied to gas consumption—without turnover, there’s no continuous burning.
Which signal do you pay more attention to?
#dusk @Dusk $DUSK
成交笔数和价差
上架标的数量
25 min(s) left