UBS's whitepaper highlights the inefficiencies in capital markets due to delays in trade execution and settlement.
UBS proposes a hybrid model combining elements of traditional finance (TradFi) and decentralized finance (DeFi) to address these challenges.
The proposed model leverages Distributed Ledger Technology (DLT) and Artificial Intelligence (AI) to standardize and streamline transactions, minimize intermediaries, and shorten settlement times.
UBS advocates for near-instantaneous 'atomic' settlements, tokenization of financial instruments, and automation of settlements through smart contracts in digital capital markets.