Collateral + Blockchain = Stability

In the previous article "Can new Settlement Structure save our financial system?" we explored the systemic frictions in the settlement layer of the repo market and how these can be addressed through integration of blockchain and tokenization solutions. In this article I will touch on another critical weak

Can new Settlement Structure save our financial system?

Settlement in the repo market, despite its critical role in global liquidity, operates on aging infrastructure built around T+1 or T+2 conventions, meaning actual delivery of cash and securities occurs up to two days after trade agreement. This latency isn’t merely operational—it constitutes embedded credit exposure.

Uncertainty Is a Determinant

Predictability of the Majority As external uncertainty rises, the behaviour of firms and their stakeholders simplifies. The worse they are at decoding the signals coming from the environment, the narrower and more predictable their behavioural repertoire becomes. This fallback to default settings lets the actors of a business ecosystem keep

The Empire’s Backbone is a Spreadsheet

The U.S. dollar’s centrality to the global financial system is rooted not only in its function as the dominant reserve and transaction currency, but also in the infrastructure that enables its movement—namely, the interconnected systems of clearing and settlement. These systems, primarily composed of Fedwire, CHIPS, and

TARGET2 - why EUR is F-D?

The Trans-European Automated Real-time Gross Settlement Express Transfer system, more commonly referred to as TARGET, represents the core of the Eurozone’s payment infrastructure. As the real-time gross settlement (RTGS) mechanism for the euro, it plays a pivotal role in enabling cross-border payments within the Economic and Monetary Union (EMU)

Collateral-aware digital monetary network

The global monetary system remains one of the least understood yet most consequential structures shaping modern economic life. Despite its centrality to financial stability, international trade, and monetary policy, the mechanisms through which money is created, distributed, and recycled across borders remain obscured by institutional complexity and academic neglect. This

Central Banks don't matter and this will not change in the foreseeable future

The rise and fall of the shadow banking system—as chronicled by Zoltan Pozsar in his seminal 2008 article—offers a crucial case study in how modern financial innovation evolved under faulty assumptions, and ultimately destabilized the global monetary order. From a systemic perspective, the story is not merely one

The global economy at a crossroads

The global trading system stands at a crossroads, as outlined in Stephen Miran’s study, A User’s Guide to Restructuring the Global Trading System. The study suggests that the persistent overvaluation of the U.S. dollar, driven by the inelastic demand for reserve assets, is at the heart of

Utah prepares to "Make ₿ Gold Again"

* Utah prepares to pass a bill for Bitcoin reserves starting May 2025: https://legiscan.com/UT/text/HB0230/2025 * Montana planned to create a bitcoin reserve as early as July 2025, but the bill was rejected by House lawmakers on February 22 (voted 41-59): https://legiscan.com/MT/text/HB429/

The DORA Jungle - welcome to another EU nightmare

The European Union's Digital Operational Resilience Act (DORA) is said to be transformative regulation for the financial sector. It aims to strengthen resilience against cyber threats and ICT disruptions, requiring financial institutions and their third-party service providers to implement comprehensive risk management, incident response, and continuous monitoring strategies.

Regulating Cryptocurrencies: opportunities and Challenges for Investors

Introduction The rapid evolution of cryptocurrencies has transformed them from niche financial instruments into a significant asset class. This development brings new opportunities for investors but also introduces complex legal and regulatory challenges. This article explores key aspects of the cryptocurrency landscape, including: Emerging Opportunities * Cryptocurrencies and blockchain technology as

Will AI and Blockchain bring repo market out of the shadows?

The repurchase agreement (repo) market is a fundamental component of the global financial system, serving as a crucial mechanism for short-term funding and liquidity management. By allowing financial institutions to engage in collateralized borrowing and lending, the repo market facilitates efficient capital allocation, enhances market liquidity, and supports the functioning