On-chain T+0 settlement threatens legacy financial intermediaries
The guest argued that the transition to instantaneous on-chain settlement (T+0) faces intense resistance from incumbent financial players who rely on settlement lags for economic rents.
The argument
The SEC's push to migrate capital markets on-chain threatens traditional intermediaries who profit from the clearing and settlement delays of legacy systems. This resistance is framed as a key battleground between traditional finance incumbents and digital asset disruptors.
The thesis, stress-tested
✓ What validates it
- ✓SEC mandates or approvals for on-chain capital market transactions
- ✓Reduction in standard settlement times below T+1 in major markets
▸ Risks discussed
- ▸Incumbent lobbying successfully slowing down the regulatory transition to T+0
- ▸Systemic risks or technological bottlenecks in high-volume instantaneous settlement
Hear it yourself
"It's about ensuring that our regulators know what we're doing and, are are happy with it and don't have concerns with it. It's, you know, getting the the contracts in order and in place. So nothing is a blocker, but there are challenges. Right? Like, the even in The US, there are different regimes. Right? Like, there's New York, which has its its its own license versus other states. There's complexity there in how you operate and where your entity is and all of those things implement influence the timeline and, the implementation path. The technological build is actually the the easiest part."
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