Blockchain Firm Digital Asset and ISDA Eye Smart Contract Use in Derivatives Trading

Published at: April 10, 2019

Distributed ledger technology (DLT) provider Digital Asset is collaborating with the International Swaps and Derivatives Association (ISDA) to develop a new tool that can support the use of smart contracts for derivatives trading. The news was revealed in an ISDA press release on April 9.

The two parties’ collaboration focuses on creating interoperable technical solutions that advance standardization. According to the press release, this will allow for greater automation of derivatives trade management via the use of Digital Asset’s proprietary smart contract modelling language.

Specifically, they will work together to develop an open-source reference code library that will help support the adoption of the ISDA Common Domain Model (CDM). The CDM is a standardization tool that provides derivatives market participants with a single, common digital representation of derivatives trade events and actions across the trade lifecycle.

The forthcoming open-source reference code library will help developers implement ISDA CDM in solutions for trading and managing derivatives via Digital Asset’s smart contract language, “DAML.”

DAML, which was made open-source by Digital Asset on April 4, is a smart contract modeling language that can be implemented by software developers in the context of derivatives trade management. As the press release notes:

“It [DAML] is used [...] to describe multi-party workflows and to automate transactions between participants. DAML enables derivatives contracts to be described in terms of the rights, obligations and market conditions that govern these contracts.”

The reference code library will reportedly help developers to “unambiguously construct lifecycle events with a machine-executable specification,” as well as allowing the ISDA CDM to fully integrate with DAML.

As previously reported, the United States Commodity Futures Trading Commission released a primer in fall 2018 devoted to smart contracts, which noted their potential to automate trade execution and management and identified challenges for regulators to tackle.

Tags
Adoption
Blockchain
Smart Contracts
Related Posts
US State of Connecticut Introduces Bill to Authorize Smart Contract Use in Commerce
A committee of the Connecticut state legislature has proposed to authorize the use of smart contracts in commerce in the state, according to official documentation introduced on March 7. The Commerce Committee of the Connecticut General Assembly (CGA) has introduced House Bill 7310, suggesting that blockchain-powered smart contracts may be used in commerce conducted or initiated in the United States state of Connecticut. The committee elaborated that any cryptographic signature or a record secured through distributed ledger technology (DLT) should be considered to be in an electronic form and an electronic record. The CGA Commerce Committee emphasized that no smart …
Adoption / March 8, 2019
Wear-to-earn NFTs target the billion-dollar fashion industry
The rise of the Metaverse and Web 3.0 are set to disrupt multiple sectors including the billion-dollar global fashion industry. As the world moves from physical to digital, traditional fashion design can transform into virtual wearables that can be leveraged in both augmented reality (AR) and in real life. Megan Kaspar, managing director at Magnetic Capital and member of Red DAO — a fashion-focused decentralized autonomous organization — told Cointelegraph she believes that digital fashion nonfungible tokens, or NFTs, will be the largest NFT category of Web 3.0: “Digital fashion NFTs include clothing, shoes, jewelry, accessories and more that can …
Adoption / Dec. 1, 2021
Genomics company explores NFTs in hopes of advancing precision medicine
It’s predicted that nonfungible tokens (NFTs) will have a vast impact on society. Given this, it shouldn’t come as a surprise that the trillion-dollar healthcare sector has begun to explore NFTs tokens to advance medicine. It’s also important to point out that blockchain technology can play an increasingly important role within the healthcare sector. This was recently highlighted in a report from the European Union Blockchain Observatory, which specifically documents how blockchain applications can solve challenges facing the healthcare industry. For example, the paper notes that patient engagement and transparency of how data is stored, along with the effective distribution …
Decentralization / May 23, 2022
Ripple wants to bring Ethereum smart contracts to the XRP Ledger
Ripple users may be able to interact with Ethereum-compatible decentralized applications (DApps) in the future following the launch of a test phase of Ripple’s new XRP Ledger sidechain. The launch of the sidechain was shared in a Tweet by blockchain development firm Peersyst Technologies on Oct. 17, noting that the new sidechain is compatible with Ethereum Virtual Machine (EVM). This means that Ripple users could eventually have access to decentralized applications like Uniswap (should it port over) and Web3 wallets such as Metamask and XUMM Wallet. The new sidechain also comes with a cross-chain bridge built to transfer XRP and …
Adoption / Oct. 18, 2022
How will ChatGPT affect the Web3 space? Industry answers
With the many possibilities opened by ChatGPT, executives within the Web3 space predicted how the artificial intelligence (AI) tool developed by OpenAI would make its impact on the industry. From using the bot for smart contract auditing to enhancing user interactions with AI, various executives gave their thoughts on how the new AI tool will have an impact on the Web3 industry. Dmitry Mishunin, the CEO of the smart contract auditing firm HashEx, believes that ChatGPT will have an influence on the security of smart contracts. Mishunin told Cointelegraph that while the future is unsure, it can go both ways. …
Adoption / Dec. 19, 2022