1 2 3 4 5 6 Distributed ledger technology has great potential to drive simplicity and efficiency through the establishment of new financial services infrastructure and processes The following six key value drivers for DLT were identified through the in-depth examination of nine use cases from across financial services. Value drivers 1 Operational simplification DLT reduces / eliminates manual efforts required to perform reconciliation and resolve disputes 2 Regulatory efficiency improvement DLT enables real-time monitoring of financial activity between regulators and regulated entities Counterparty risk reduction 3 DLT challenges the need to trust counterparties to fulfil obligations as agreements are codified and executed in a shared, immutable environment 4 Clearing and settlement time reduction DLT disintermediates third parties that support transaction verification / validation and accelerates settlement 5 Liquidity and capital improvement DLT reduces locked-in capital and provides transparency into sourcing liquidity for assets 6 Fraud minimization DLT enables asset provenance and full transaction history to be established within a single source of truth WORLD ECONOMIC FORUM | 2016 19