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Platform to bring OTC derivatives onto blockchain

— 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
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Adrian Flores

Adrian Flores

Adrian Flores is a features editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected]

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