Design Objective

DO-1 - Minimize latency of settlement processes

The prototype should enable nearly instantaneous settlement of trades. The delay between the initiation of a trade and the actual settlement of a transaction is to be reduced to a minimum.

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design-knowledge/bond-markets-tokenization-tac-do1

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Producer label: DO-1
Source paper: Designing the future of bond markets: Reducing transaction costs through tokenization
Timestamp: 2026-08-05T00:00:00+00:00
Bundle path: design-knowledge/bond-markets-tokenization-tac-do1.md

bond-markets-tokenization-tacdesign-objectivefinance-bondssecuritiestokenizationtransaction-costs

Design objective DO-1: Minimize latency of settlement processes

The prototype should enable nearly instantaneous settlement of trades. Also, the delay between the initiation of a trade and the actual settlement of a transaction is to be reduced to a minimum. This is crucial to enhance efficiency in financial markets by leveraging the potential of blockchains.

Source paper

This design objective is proposed by Designing the future of bond markets: Reducing transaction costs through tokenization (David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss, 2025).

Addresses

Meta-requirement MR-1: Reduce time-intensity

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1 Design Principle

design-knowledge/bond-markets-tokenization-tac-dp1

DP1 - Apply modular design of distinctive system components

Modularly structure complex bond-market systems into distinct, interconnected contracts to work within Ethereum's contract-size limits, using modifiers and specific sender functions to protect components from unauthorized access.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

1 Meta Requirement

design-knowledge/bond-markets-tokenization-tac-mr1

MR-1 - Reduce time-intensity

Although the clearing and settlement processes have been improved and standardized, settlement and clearing time still vary across some markets and, in most markets, take two business days. The prototype shall minimize process times.

bond-markets-tokenization-tacfinance-bondsmeta-requirementsecurities+2

1 Paper

papers/bond-markets-tokenization-tac

Designing the future of bond markets: Reducing transaction costs through tokenization

Using a transaction-cost-theory lens, the paper identifies seven meta-requirements and derives five design objectives for an Ethereum-based bond prototype, from which it formulates five design principles for blockchain-based bond markets: apply modular design, exploit multi-token standards, automate on-chain payouts, restrict forced-transfer functions to regulators, and implement smart-contract-based crypto securities registers.

blockchainbond-markets-tokenization-tacdesign-science-researchfinance-bonds+3

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{
  "type": "design-objective",
  "title": "DO-1 - Minimize latency of settlement processes",
  "description": "The prototype should enable nearly instantaneous settlement of trades. The delay between the initiation of a trade and the actual settlement of a transaction is to be reduced to a minimum.",
  "resource": "https://doi.org/10.1007/s12525-025-00753-3",
  "source_paper": "Designing the future of bond markets: Reducing transaction costs through tokenization",
  "label": "DO-1",
  "tags": [
    "bond-markets-tokenization-tac",
    "design-objective",
    "finance-bonds",
    "tokenization",
    "transaction-costs",
    "securities"
  ]
}