National Settlement Depository (NSD) is a member of the Moscow Exchange Group and provides depository, settlement (bank account), and related services to financial market players. It is planning to launch its long-awaited digital asset ledger next month.
NSD has chosen Switzerland as the jurisdiction to incorporate D3ledger (Decentralized Digital Depository). In 2017 a growing group of forward-looking CSDs, including Russia’s National Settlement Depository, initiated an R&D effort on servicing digital assets in that regulated market.
D3ledger became the first interoperable blockchain network enabling financial institutions from different markets to issue, store, and exchange digital assets. With D3ledger, financial institutions can easily start providing digital asset services to clients. It offers all the client-side and system software for free and charge only for transactions and safekeeping.
With the June launch, D3ledger will track ownership of several assets: Sora, a security token representing unregistered shares in a small healthcare company; Soramitua, cryptocurrency developed by Japanese tech provider; and the top two cryptocurrencies by market capitalization, bitcoin and ether, along with any ERC-20 token that runs on the ethereum blockchain.
According to Artem Duvanov, head of innovation and a director at NSD said that the next step will be adding a reputable stablecoin to D3ledger to enable over-the-counter (OTC) crypto transactions without counter-party risk and delivery-versus-payment of securities trades, meaning both sides of a trade are completed simultaneously.
“We will include an established connection with some stablecoin, like Gemini coin or some coin backed by dollar or euro,” he said.
Artem Duvanov, head of innovation and a director at NSD, said it picked Switzerland for its congenial regulatory environment and potential for market-making in digital assets.
He told CoinDesk: “In terms of laws, Switzerland allows the tokenization of at least some kind of securities. That’s the first thing. And it’s favorable for such things because there is market demand.”