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Settlement friction drains capital. Over the past decade, failed trades and delayed clearing have cost the financial industry an estimated nearly $1 trillion. But the solution is well underway.
When the US reduced equity settlement from two business days to one, the clearing fund at the DTCC dropped $3 billion in just three months. One day of friction removed billions in trapped capital immediately. Now, global capital markets are pushing that logic to its clear limit by moving selected processes and assets on-chain.
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