A report by a major traditional finance lobby group said that using distributed ledger technology in the securities market could result in savings of up to $100 billion annually.

The Global Financial Markets Association, in a report released Tuesday evening, called on regulators to allow technology underpinning crypto to be used to help with collateral management, asset tokenization, and sovereign bond markets.

Adam Farkas is the Chief Executive Officer of GFMA. His affiliates are located in Europe, Asia and North America and include major players like JPMorgan Chase and HSBC.

Farkas said, “This potential shouldn’t be ignored or forbidden where regulatory oversight and resilience measures already exist.” He called for an international framework that harmonizes the DLT to allow markets to connect.

The report stated that releasing collateral in areas such as derivatives and securities loans could save more than $100 billion in financial resources per year. Smart contracts could also be used to automate the settlement and corporate actions processes for stock splits, mergers, and other corporate actions, resulting in a $15-20 billion reduction in operational costs.

The study shows that traditional financial players are increasingly interested in using DLT.

Euroclear a firm in Brussels specializing in clearing and settlement is about to release a platform for DLT bonds trading. European Central Bank also is looking into how it can improve its financial settlement system’s interaction with decentralized technology.

Read more about Bye-bye brokers: EU tries stock trading the Web3 way

Stephen Alpher edited the book.