US post-trade giant The Depository Trust & Clearing Corporation (DTCC) has called on industry players to work together on blockchain technology, claiming it could make post-trade processes faster and more efficient.

Blockchain – essentially a decentralised public ledger – lists every transaction ever made, logs it, and shares it among a global network of computers.

Many industry players see the software, which underpins controversial web-based currency Bitcoin, posing a serious challenge to established financial business models.

In a white paper this week DTCC, which specialises in clearing and settlement, said blockchain could “speed up and simplify” trade and contract validation, issuance of assets and securities as well as settlement and clearing processes.

"The industry has a once-in-a-generation opportunity to re-imagine and modernise its infrastructure to resolve long-standing operational challenges," said DTCC chief exec Michael Bodson.

His comments follow a paper published by the International Monetary Fund that said blockchain could seriously disrupt the business models of established financial institutions, a view shared by the Bank for International Settlements.

All agree, however, that the technology is still immature and, in its current form, has limited scale.

“The current approach of many firms experimenting in private with blockchain technology could lead to a new post-trade environment with the same integration and reconciliation problems that companies face today,” said Bodson, adding that DTCC is well positioned to lead the effort in exploring the technology further.