Our DLT predictions for 2023

The world of DLT is rapidly evolving, and it’s more important than ever to stay ahead of the curve. In this spirit, here are our predictions for what will happen in 2023.

TradFi best practices and standards are adopted by/forced onto CeFi

With the 2022 debacle of Centralised Finance companies e.g. FTX, Traditional Finance (TradeFi) governance and risk management practices will be pushed down to surviving players and benefit Traditional Finance players moving towards offering crypto services.

First live wholesale CBDC enabled FMI transaction

Central bank digital currencies (CBDCs) are expected to play a major role in the future of the financial industry, and 2023 could be the year when the first live wholesale CBDC-enabled financial market infrastructure (FMI) transaction takes place. This would be a significant milestone in the adoption of CBDCs and would pave the way for more widespread use in the future.

Retail DeFi continues to gain traction, institutional DeFi develops around traditional assets

Decentralized finance (DeFi) has already gained significant traction among retail investors, and this trend is expected to continue in 2023. However, institutional investors are also starting to take notice and explore the potential of DeFi for traditional assets such as currency, stocks and bonds. This could lead to the development of institutional-grade DeFi platforms and products in the coming years.

Layer 2 development continues with increased focus on privacy and institutional usage

Layer 2 solutions are expected to play a major role in the scalability and adoption of blockchain technology in the financial industry. In 2023, there will be a continued focus on developing layer 2 solutions that provide greater privacy and are suitable for institutional use. This will help to overcome some of the limitations of layer 1 solutions and make DLT more viable for the securities industry.

Digital bonds and other digital securities issuance on Blockchain become BAU

The issuance of digital bonds and other digital securities on blockchain platforms is expected to become business-as-usual (BAU) in 2023. This will be driven by the increased efficiency and cost-effectiveness of DLT-based securities issuance as well as the growing demand for digital assets among investors. It will become a standard way of raising capital for companies and organizations.


Cryptocurrencies, digital assets and regulation

The last five years we have seen dramatic increase in the adoption of digital assets, the most prominent example being cryptocurrencies. Currently more than 300 million people around the world use / own cryptocurrencies and take up from institutional investors is rising. According to a recent study by Fidelity Digital Assets, over half (52%) of…

Interview with Alex Smith on the new non-custodial ETH staking service

In September 2022, Ethereum, the second largest cryptocurrency by market cap, successfully upgraded to a Proof of Stake consensus mechanism, improving the security, and radically changing the sustainability of the Ethereum blockchain. Holders of ETH, the native token of Ethereum, can stake their assets to secure the network and, in return, will receive a reward.Alex…

Interview with Stephan Kunz on SDX Web3 Services

In this interview, Stephan tells us more about SDX Web3 Services, its newly launched institutional digital asset custody offering, and how it can support the needs of institutional investors. We also look to the future and what is next for SDX in terms of its Web3 product and service offerings.

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