#dusk $DUSK @Dusk
Most people who evaluate blockchain for finance focus on the tech: speed privacy finality. I think the more important question is which institution Dusk is trying to replace.
The answer is the CSD and most people have never heard of one.
CSD stands for Central Securities Depository. In traditional markets every security every stock bond fund unit sits in a CSD. Euroclear in Europe DTCC in the US. You dont interact with them directly but they are behind every single trade you make. When you buy a share the trade settles at the CSD level. When a company issues a bond the CSD records and holds it. Every transfer goes through them.
The CSD model works but it is centralised by design. Settlement is slow partly because it has to pass through or reconcile with this central layer. Costs exist partly because you are paying for the CSD infrastructure and the chain of custodians that plugs into it.
Dusk calls its model DeMI Decentralized Market Infrastructure. The thesis is that the chain itself can perform the functions of the CSD. Issuance custody settlement all recorded on-chain. Native issuance means the security is created on-chain rather than in a CSD and settlement means the asset and payment leg coordinate on the ledger directly.
This is not a small claim. CSDs are legally required in most markets. Replacing them is not a technical problem but a regulatory one. The DLT Pilot Regime which we covered before is part of how that legal barrier gets addressed.
if you work in finance and you know how CSDs actually operate whats the piece of that function that seems hardest to move on chain the legal record of ownership the corporate actions, or something else? @Dusk
$TRUMP $MAGMA
#dusk
Most people who evaluate blockchain for finance focus on the tech: speed privacy finality. I think the more important question is which institution Dusk is trying to replace.
The answer is the CSD and most people have never heard of one.
CSD stands for Central Securities Depository. In traditional markets every security every stock bond fund unit sits in a CSD. Euroclear in Europe DTCC in the US. You dont interact with them directly but they are behind every single trade you make. When you buy a share the trade settles at the CSD level. When a company issues a bond the CSD records and holds it. Every transfer goes through them.
The CSD model works but it is centralised by design. Settlement is slow partly because it has to pass through or reconcile with this central layer. Costs exist partly because you are paying for the CSD infrastructure and the chain of custodians that plugs into it.
Dusk calls its model DeMI Decentralized Market Infrastructure. The thesis is that the chain itself can perform the functions of the CSD. Issuance custody settlement all recorded on-chain. Native issuance means the security is created on-chain rather than in a CSD and settlement means the asset and payment leg coordinate on the ledger directly.
This is not a small claim. CSDs are legally required in most markets. Replacing them is not a technical problem but a regulatory one. The DLT Pilot Regime which we covered before is part of how that legal barrier gets addressed.
if you work in finance and you know how CSDs actually operate whats the piece of that function that seems hardest to move on chain the legal record of ownership the corporate actions, or something else? @Dusk
$TRUMP $MAGMA
#dusk
