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London, 16 April 2020 – Research by area2invest, a Pan-European financial technology company founded on Liechtenstein heritage, about the prospects for Dencentralised Finance has highlighted the disruptive role Instimatch Global is playing with the growth of its money markets community.

Written by Michael Guzik and Max J. Heinzle, one of the three strong Decentralised Finance (DeFi) trends the paper identifies is algorithmic money markets, with lending and borrowing through “collateralisation of everything”.

Hugh MacMillen, founder of Instimatch Global, who is cited in the paper, said “This is a thought-provoking paper, and it’s good to see external validation of our research and development around Intraday borrowing and lending with distributed ledger technology.  Mass adoption of Decentralised Finance, however, will only occur if regulated payment networks with digital/tokenised cash can enter the DeFi ecosystem.”

Instimatch Global role in money market innovation

The white paper says about Instimatch Global:

“By enabling counterparts to meet and exchange Know-your-Customer, and then also transact in all areas of the money market over a single venue, Instimatch Global aims to lower the barriers to cross border transacting.

 The main catalyser for change in the money markets is the underlying payments system, combined with a platform to match borrowers with lenders. If a large community of institutional participants can exchange payment flows instantly using blockchain or distributed ledger technology (DLT) within the community, then massive nostro/vostro savings can be achieved compared to the SWIFT system using SSIs.  This internal payment network would then allow Intraday lending and borrowing to take place as payments would take less than three seconds.

Adding the margining mechanisms of the R3 consortium and the notary, as a trusted third party, would facilitate new methods of securities lending and Lombard credit type approaches. Many smaller banks sit on securities which are too small (such as private placements) and are not easily pledged as collateral. According to Instimatch Global, by using the DLT approach, trust can be added easily to the network.”


To download the full whitepaper, click here.

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