It is estimated that by 2022, smart contracts will be in use by more than 25% of global organisations. If the uptake of smart contracts is as predicted, we could see a reduction in banks’ infrastructure costs attributable to cross-border payment, securities trading and regulatory compliance by between $15 – 20 billion per annum.
Smart contracts are automatable coded instructions that can self-execute on occurrence of pre-defined events and conditions. Often deployed on distributed ledger technology (DLT) platforms (including blockchain), they can provide a permanent record and audit of the transaction history.
D2LT are closely engaged in the development of smart contracts, mapping their move from proof-of-concept into real world use cases. We have supported a range of stakeholders to understand both the technical aspects of the technology as well as the legal and regulatory aspects. Combined with our extensive knowledge of legal data and the legal documentation underpinning derivatives, we are also able to work closely with stakeholders in the development of smart ‘derivative’ contracts which have the potential to streamline much of the transacting process involved in derivative trading. Our knowledge in legal, technology and banking therefore places D2LT in an effective position to engage with our clients, providing strategic decision making on a range of issues.