Requirement-driven Taxonomy Development – A Classification of Blockchain Technologies for Securities Post-Trading

Abstract

In recent years, blockchain and distributed ledger technology (DLT) and its disruptive potential has been one of the most discussed topics in the field of information systems. Driven by the prospect of cost savings and efficiency gains, financial markets are at the core of these discussions. However, in the increasingly convoluted and constantly evolving market of technology providers and platforms, organizations struggle to find a solution that fulfills the specific requirements of their application scenario. To evaluate the suitability of different blockchain-based platforms for securities post-trading, we develop a new methodology to create a technology classification that takes the demands of a specific application context into account. The resulting requirement-based taxonomy sheds light on factors that impede the adoption of blockchain- and DLT-based post-trading, highlights future research challenges, and offers a valuable tool to induce communication between involved stakeholders.