What Is the Primary Use Case for a Private Blockchain in Financial Derivatives?

The primary use case is streamlining post-trade processing, such as clearing and settlement. Derivatives trading involves multiple intermediaries, leading to high costs and delays.

A private blockchain provides a shared, single source of truth for trade data among counterparties. This reduces reconciliation efforts, minimizes operational risk, and can accelerate the settlement cycle from days to near-instantaneous.

It increases efficiency and transparency in complex over-the-counter (OTC) markets.