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Platform to bring OTC derivatives onto blockchain

By Adrian Flores
 — 1 minute read

Multi-asset broking firm eToro has released the details of its new open-source programming language for financial contracts as it attempts to bring the over-the-counter derivatives market onto the blockchain.

Lira is a domain-specific language that can be used to write OTC financial contracts for assets currently on the ethereum blockchain, eToro said in a statement.

It said the language is both secure and easy to programme while guaranteeing self-executing global settlement and automated trade reporting and monitoring, while its easy tracking and compression will enable better collateral requirement efficiencies.

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Furthermore, it is the first decentralised finance project that will look to expand the code across different blockchains now that it is open-sourced.

eToro chief executive and co-founder Yoni Assia said bringing the OTC derivatives market onto the blockchain will bring more transparency and capital efficiencies to the industry.

“Activities in the post-trade cycle, such as settlement and the clearing of derivatives, are both expensive and a source of systemic risk,” Mr Assia said.

“We believe that blockchain technology can provide a secure execution environment in which settlement is guaranteed by design.”

Platform to bring OTC derivatives onto blockchain

Multi-asset broking firm eToro has released the details of its new open-source programming language for financial contracts as it attempts to bring the over-the-counter derivatives market onto the blockchain.

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