DTCC Says Traditional IT Security Frameworks Must Be Updated To Tackle Blockchain
DTCC Says Traditional IT Security Frameworks Must Be Updated To Tackle Blockchain
February 14, 2020
DTCC Says Traditional IT Security Frameworks Must Be Updated To Tackle Blockchain
DTCC Says Traditional IT Security Frameworks Must Be Updated To Tackle Blockchain
February 14, 2020

The Depository Trust & Clearing Corporation (DTCC), a global financial market infrastructure giant, says that traditional IT security frameworks must be updated to tackle the blockchain.

On February 12, it has been reported that an official press release took note of the expected rise in the adoption of distributed ledger technology like blockchains in financial services globally. 

However, the DTCC has published a new white paper, Security of DLT Networks, which recommends the creation of a comprehensive, DLT-specific Security Framework and, potentially, an Industry Consortium that would spearhead research into standards and guidelines for the sector.

In its white paper, DTCC notes that at present, DLT in financial services is characterized by fragmented standards and guidance with respect to technology-specific security risks.

The industry giant recognizes that DLT implementation is poised to offer multiple actors a wide gamut of value propositions, notably “strengthened identity measures, improvements in information preservation and data integrity, processing efficiencies, increased operational capacity, and compliance effectiveness.”

ALSO READ :  Binance CEO Changpeng Zhao Overtakes Bitmain Co-Founder Micree Ketuan Zhan In New Hurun Rich List

Yet with these benefits come new risks, with better standards needed to ensure DLT interoperability, the consensus around terminology, effective governance and robust digital identity management.

The paper argues that all financial industry stakeholders thus have an interest in contributing to the creation of a DLT security framework.

At the level of individual firms, DTCC notes that best practices should be established spanning risk management and oversight, cybersecurity, third-party management, and incident response.

Moreover, technology-specific considerations should be taken into account for the creation, maintenance, storage and disposal of sensitive data. These considerations would aim to bridge the security gap between DLT and legacy IT environments and establish standard authentication methods with attention to the use of cryptographic hash functions.

In a statement, Stephen Scharf, the Chief Security Officer at DTCC, said:

“As is common in IT security communities, frameworks must be widely available, generally agreed upon, and commonly adopted. As best practices mature, they can be adopted into a formal framework and used for financial industry participants and regulators alike.”

Image: twitter.com

As it has been reported, this is not DTCC’s first foray into tackling the global policy standards it judges to be necessary for smooth DLT implementation in financial services.

ALSO READ :  Nippon Express To Develop Blockchain-Based Transportation Network

In March 2019, it published a white paper outlining guiding principles for the post-trade processing of tokenized securities. 

Back in 2018, a DTCC-led study found that DLT is scalable enough to support daily trade volumes of the United States equity market.

Thus, DTCC, itself has plans to re-platform its Trade Information Warehouse with DLT.

Source: dtcc.com | cointelegraph.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Rapper Logic Dives Into Bitcoin Investment

Rapper Logic Dives Into Bitcoin Investment

Rapper Logic has dived into Bitcoin investment after Game of Thrones actress Maisie Williams’ call for advice as to whether to go long on Bitcoin (BTC) last week. It has been reported that in a video posted to his...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.