Banco Santander director talks about the use of DLT in the financial sector

John Whelan, the head of Banco Santander’s blockchain lab in Madrid, recently praised the potential for greater adoption of decentralized ledger technology in mainstream finance.

During a webinar hosted by Fintech Surge and the Future Blockchain Summit on Wednesday, Whelan noted:

“I can envision a future where there is a global settlement network for an asset class of securities operating in a fully controlled, private, approved layer two on top of a public blockchain network.”

While acknowledging that current public blockchain networks may not be optimized for high-frequency transactions, Whelan emphasized their suitability for financial services settlements.

“Settlement is not something that needs to be done immediately,” said Whelan, adding, “Usually the settlement in the financial market is T + 5 – we agree on a trade and wait five days for settlement.”

For Whelan, financial services stakeholders see significant potential in reducing clearing throughput over blockchain networks.

Banco Santander’s Digital Asset Chief also stated that DLT use in mainstream finance should reach a point where ERC-20, or any other blockchain-based token standard, becomes suitable for use in what Whelan calls ‘regulated DeFi’ or ‘reg-DeFi’ called. . “

Earlier in April, Rune Christensen, CEO of Decentralized Financial Unicorn MakerDAO, stated that DeFi needs regulatory clarity to move from the current isolated bubble phase to a more significant link with mainstream finance.

Whelan also cited the recent announcement that Banco Santander was one of three financial institutions selected by the European Investment Bank to issue a two-year Euro 100 million ($ 120 million) digital bond. According to the bank manager, the legal record of ownership is fully domiciled on the public Ethereum blockchain.

Societe Generale, one of the other banks chosen by the EIB for digital bond issuance, also recently issued a security token on the Tezos blockchain.