Committed Settlement: Adoption under UK Law, an analysis by Linklaters
Posted by Digital Asset on Sep 26, 2019 2:34:31 PM

 


Blockchain image 2-1Digital Asset’s Committed Settlement: Adoption under UK Law, an analysis by Linklaters

By Charlie Yeh, Assistant General Counsel, Digital Asset

In July we wrote a blog about Committed Settlement, a smart contract-based methodology that effortlessly and near instantaneously creates control accounts on a distributed ledger.  Control accounts have been used for decades to hold collateral from a pledgor and protect a secured party against the default or bankruptcy of the pledgor. 

Analysis

With the right legal framework, Committed Settlement can give you the ability to create, record, notify and/or perfect security interests (depending on the jurisdiction) in a fraction of a millisecond, with minimal cost and just a few lines of DAML code.  With these efficiencies, the way we approach bankruptcy proceedings, collateral and risk management - and potentially all financial transactions in general - could change. 

Working with King & Wood Mallesons, we analyzed whether our Committed Settlement methodology would work under the legal framework in Australia and Hong Kong to validate that this is more than just a smart technical concept, but a method that could actually hold up under local bankruptcy law.

Now, we’ve collaborated with the leading global law firm Linklaters to analyze how the Committed Settlement would work under existing UK law.  Linklaters just published a report that considers the key issues from an English law perspective. 

When developing the technical details of Committed Settlement, our guiding principle is that technology should support the existing legal frameworks governing business transactions and exchanges of value. Technology should not assume or attempt to change statutes and caselaw in order to support the value exchange it enables. It’s with this in mind that Linklaters outlines in a new thought piece the key legal and regulatory considerations relevant to the implementation of our Committed Settlement technology from an English law perspective.

Download

Download the Linklaters report here.

 

Charlie Yeh is an assistant general counsel at Digital Asset where he helps clients understand how distributed ledger and smart contract technology align with prevailing legal frameworks.  Previously Charlie served as legal counsel to JPMorgan’s prime custody, clearing and collateral management businesses. He helped JPMorgan reduce its trillion dollar intraday exposure to clearing repurchase agreements and establish segregated IM control accounts on behalf of it clients. 

 

 


Blockchain image 2-1Digital Asset’s Committed Settlement: Adoption under UK Law, an analysis by Linklaters

By Charlie Yeh, Assistant General Counsel, Digital Asset

In July we wrote a blog about Committed Settlement, a smart contract-based methodology that effortlessly and near instantaneously creates control accounts on a distributed ledger.  Control accounts have been used for decades to hold collateral from a pledgor and protect a secured party against the default or bankruptcy of the pledgor. 

Analysis

With the right legal framework, Committed Settlement can give you the ability to create, record, notify and/or perfect security interests (depending on the jurisdiction) in a fraction of a millisecond, with minimal cost and just a few lines of DAML code.  With these efficiencies, the way we approach bankruptcy proceedings, collateral and risk management - and potentially all financial transactions in general - could change. 

Working with King & Wood Mallesons, we analyzed whether our Committed Settlement methodology would work under the legal framework in Australia and Hong Kong to validate that this is more than just a smart technical concept, but a method that could actually hold up under local bankruptcy law.

Now, we’ve collaborated with the leading global law firm Linklaters to analyze how the Committed Settlement would work under existing UK law.  Linklaters just published a report that considers the key issues from an English law perspective. 

When developing the technical details of Committed Settlement, our guiding principle is that technology should support the existing legal frameworks governing business transactions and exchanges of value. Technology should not assume or attempt to change statutes and caselaw in order to support the value exchange it enables. It’s with this in mind that Linklaters outlines in a new thought piece the key legal and regulatory considerations relevant to the implementation of our Committed Settlement technology from an English law perspective.

Download

Download the Linklaters report here.

 

Charlie Yeh is an assistant general counsel at Digital Asset where he helps clients understand how distributed ledger and smart contract technology align with prevailing legal frameworks.  Previously Charlie served as legal counsel to JPMorgan’s prime custody, clearing and collateral management businesses. He helped JPMorgan reduce its trillion dollar intraday exposure to clearing repurchase agreements and establish segregated IM control accounts on behalf of it clients. 

 

Topics:

Smart Contracts, DAML, DLT, committedsettlement, settlement, linklaters, digital lock, patent

Recent Posts
NEWS
Block, Stock, and Barrel: Let's Talk About DAML
09/25/2020
BLOG
Interconnected / September
09/24/2020
NEWS
Digital Asset Expands DAML for Corda Integration Support with Chainstack
09/24/2020
NEWS
Entrepreneurship in Heavy-Duty Technology: Digital Asset CEO Yuval Rooz (Part 1)
09/23/2020
BLOG
How to Monetize your Data at Scale
09/15/2020
PRESS RELEASE
BNP Paribas and Digital Asset Join Forces to Develop DLT Trade and Settlement Apps
09/15/2020
PRESS RELEASE
DAML Named the Exclusive Smart Contract Language for China’s Blockchain Services Network
09/14/2020
NEWS
Digital Asset Joins Leading Companies and Law Firms in  Lawyers for Racial Justice Initiative
09/10/2020
BLOG
GBBC Davos 2020 - Blockchain, smart contracts, and sustainability
09/10/2020
NEWS
DAML Smart Contract Language is Now Used for Digital Bonds
09/4/2020
PRESS RELEASE
SGX Uses DAML to Complete its First Digital Bond Issuance
09/1/2020
BLOG
Smart Contracts and Data Privacy in the Wake of COVID-19
08/27/2020
NEWS
Women in Tech with Kelly Mathieson
08/26/2020
BLOG
Unlocking New Investment Opportunities with Digital Assets
08/20/2020
NEWS
The Tech Talks Daily: Meet the Creators of DAML
08/4/2020
BLOG
Enhancing Corda with DAML Smart Contracts
07/28/2020
NEWS
Smart contract language DAML now on Corda blockchain
07/27/2020
NEWS
Digital Asset has sights on stock market blockchain interoperability with DAML
07/27/2020
NEWS
Fintech Finance: Virtual Arena with Yuval Rooz
07/27/2020
PRESS RELEASE
Digital Asset, Creators of DAML, Adds VMware As Investor in Series C Round
07/14/2020
PRESS RELEASE
WeBank to Integrate DAML with China’s Leading Blockchain Platform
04/15/2020
PRESS RELEASE
Digital Asset is First Blockchain Startup to Successfully Complete AICPA Type 2 SOC 2 Examination
03/5/2020
PRESS RELEASE
Hyperledger Besu now has DAML Smart Contracts
03/3/2020
PRESS RELEASE
BTP brings smart contracts to Amazon QLDB with Sextant for DAML
02/25/2020
PRESS RELEASE
Leading Tech Companies Join Series C Financing & Former Microsoft Exec Joins Board
02/4/2020
BLOG
Outcompeting Destructive Systems with Smart Contracts
02/3/2020
PRESS RELEASE
Odyssey Introduces Goals of the Odyssey Hackathon 2020 in Davos
01/24/2020
BLOG
Smart Contracts for Social Good: Unlocking Blockchain's Potential Beyond Finance
12/19/2019
BLOG
Low-code Smart Contracts for the Enterprise with Unibright and DAML
12/9/2019
BLOG
Committed Settlement: Adoption under UK Law, an analysis by Linklaters
09/26/2019